1. Finance DEPARTMENT: FINANCE MPUMALANGA PROVINCIAL GOVERNMENT Presentation to Select Committee on Finance on Budget and Expenditure Outcomes for the period ended 31 March 2012 as well as 1 st Quarter ended 30 June 2012 for Mpumalanga Province 14 August 2012

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4. Finance DEPARTMENT: FINANCE MPUMALANGA PROVINCIAL GOVERNMENT 4 PERFORMANCE AT 31 MARCH 2012

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10. Finance DEPARTMENT: FINANCE MPUMALANGA PROVINCIAL GOVERNMENT 10 2012/13 REPORT

11. Finance DEPARTMENT: FINANCE MPUMALANGA PROVINCIAL GOVERNMENT 11 Extract from the Mpumalanga Finance Bill that will assist in clearing some of the accruals in the various votes

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17. Finance DEPARTMENT: FINANCE MPUMALANGA PROVINCIAL GOVERNMENT 17 Extract from Estimates of Provincial Revenue and Expenditure (EPRE) Moderation of the wage bill: The compensation of employees cost and head counts are still growing despite SOPA calling for moderation of wage bill. Budget and Finance Committee of 19 June 2012 directed that this area of spending should receive special attention in each vote. There is a special project that is currently taking place that is aimed at assessing the compensation of employees budget vs actual, issues of organisational structures jointly between the Provincial Treasury, Office of the Premier, DPSA and the rest of the provincial departments. Staff verification process is currently taking place in the whole administration. The Provincial Treasury is conducting the verification in all votes with the exception of Education, Health and Public Works Roads and Transport

18. Finance DEPARTMENT: FINANCE MPUMALANGA PROVINCIAL GOVERNMENT 18 Departments have been requested to submit procurement plans in order to encourage a much more structured method of spending, as well as improved monitoring. Where procurement plans were not finalised on time, spending has been slow in some of the votes

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24. Finance DEPARTMENT: FINANCE MPUMALANGA PROVINCIAL GOVERNMENT 24 Target ratio to reduce Programme 1 to 6%

25. Finance DEPARTMENT: FINANCE MPUMALANGA PROVINCIAL GOVERNMENT 25 Recommendations that were adopted at the Executive Council Lekgotla on 25 July 2012 a) Compensation of Employees project : The special project on Compensation of Employees should continue and Provincial Treasury should ensure achievement of desired results. Departments will present reports on how they intend moderating the wage bill. b) Submission of procurement plans: departments have embraced the introduction of procurement plans that will improve spending and determination of cashflow requirements c)Approval has been granted by the Executive Council Lekgotla that procurement plans must be submitted with final budget documentation during January of each year (eg January 2013 for 2013/14 financial year). When Annual Performance plans are finalised and submitted procurement plans must also be submitted to the Provincial Treasury. When the provincial budgets are tabled in the Provincial Legislature, the Provincial Treasury must have concluded the analysis of these plans and the necessary sign off must be in place. d) Cashflow issues – cash to be transferred to departments only upon presentation of disbursement reports e) Cost Curtailment – the province to continue to implement cost curtailment measures. Provincial Treasury to continue to monitor and enforce cost curtailment measures f) Workgroups that have been established with planners, conditional grant managers, must be enhanced in order to improve spending g) Accruals: Each department that has incurred accruals must present a plan on how the accruals will be cleared as well as impact on the 2012/13 Annual Performance Plans. h) Low Spending : Executive Council Lekgotla has supported the recommendation made by Provincial Treasury that all Members of Executive Council must intensify monitoring of spending of their votes and ensure corrective measures on all issues raised at the Executive Council Lekgotla i)Mpumalanga Finance Bill must be finalised as it has gone through the applicable processes and is now ready for presentation before the Budget and Finance Committee and Executive Council and thereafter tabling at Mpumalanga Provincial Legislature

26. Finance DEPARTMENT: FINANCE MPUMALANGA PROVINCIAL GOVERNMENT THANK YOU 26