1. 2007/08 Preliminary Expenditure Outcomes Social Services Depts: Education, Health, Social Development, Arts & Culture, Sport & Recreation, and Labour Joint Budget Committee Dr Mark Blecher

2. Consolidated Expenditure – Social Services 96,2 % of the available funds in the 6 departments consists of transfers and subsidies – mainly social assistance grants in Soc Dev, conditional grants to provinces (Health: Hosp Revit, HIV& Aids) and to local government (Sport: WC 2010) and in Education (higher education subsidies and NSFAS) Core budgets (Total –T&S) comprise 3,8% of available funds – for 2007/08 total spending is 89,5 %

3. Departmental summary

4. Spending trends by Department

5. Under -expenditure Overall, the spending levels of the 6 departments are acceptable Compensation (5,4%) mainly due to unfilled posts which has a knock-on effect on G&S as well G&S(13,7%) mainly due to temporary reduction of procurement of condoms, delays in RAMP in DoL, late submission of invoices by SITA and other departmental suppliers in Education.

6. Under-expenditure (2) Transfers and subsidies(0,3%): Health - delays in making transfers due to late submission of business plans and compliance of NGO’s with service level agreements CG’s: spending is improving except for the Forensic Pathology (capital), but it is also clear with new grants that departments are over-ambitious about what can be achieved e.g. Arts Library grant, R16.7 m withheld in last quarter Payments for capital assets: 44% of R95 m unspent - includes the refurbishment of Civitas in DoH, and Soc Dev MIS, security at Indlela (trade testing centre) in DoL and IT projects in Education.

7. VACANCY RATES Arts & Culture: 24% of 728 posts Education: 25% of 1227 posts Health: 23% of 1696 posts Labour: 14% of 6470 posts Social Development: 23% of 699 posts Sports & Recreation: 42% of 331 posts Source: Vulindlela

8. VACANCY RATES (2) Source: Vulindlela

9. Vacancy rates (3) Overall comment: this situation, if left unresolved, will start to impact on service delivery in DoL and in provinces, given the support and monitoring roles played by the 5 departments who have concurrent functions Salary level 5 vacancy rates mainly Inspectors for DOL – these are quite critical – given that these persons are responsible Health and Safety inspections Appears to be a problem with level 9 posts – 48% vacancy rate - may point to lack of people with relevant experience and appropriate professional qualifications Sport: critical unfilled posts in CFO’s office Health: critical project management posts for CG’s Also high vacancies in key strategic posts at CD and DDG level across the 6 departments

10. LAST QUARTER EXPENDITURE 2007/08 Capital Assets: 58% of Social Services capital expenditure spent in last quarter (excluding Arts & Culture who spent 100%) Current Payments: 31% spent in last quarter Transfers & subsidies: 21% spent in last quarter Source: March IYM

11. Conclusion For the 2009 Budget, when deciding to recommend increased funding there is a need to be mindful of: –increasing the compensation budget – based on the evidence of the slow filling of vacant posts. –slow procurement processes – especially IT related ones due to their complexity. –the ability of the departments (especially the ones with concurrent functions) to undertake the support and monitoring function wrt to provinces in general but also wrt to CG’s.

12. Thank you