Provincial Treasury Western Cape

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Provincial Treasury Western Cape
NCOP Select Committee on Finance Public Hearings
Conditional Grant and CAPEX 12 February 2007
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Outline

• Conditional grant, infrastructure and capital
  expenditure 2005/06
• 2006/07 third quarter expenditure
• Service delivery information
• Business plan 2006/07 and 2007/08 process and
• Monitoring provincial expenditure.

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Conditional Grant, Infrastructure and Capital
Expenditure 2005/06
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CG Expenditure 2005/06
Conditional Grant Expenditure 2005/06 3rd and
4th quarter
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CG Expenditure 2005/06 (2)
Although expenditure was below notional benchmark
of 75 per cent for some conditional grants at the
end of the 3rd quarter of 2005/06, by the end of
the financial year all grants had performed well.
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Capital and Infrastructure Expenditure 2005/06
2005/06 - Infrastructure and capital expenditure
Infrastructure and capital expenditure was at an
acceptable level at the end of the 2005/06
financial year
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2006/07 3rd Quarter Expenditure
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CG Expenditure Local Government and Housing
Local Government and Housing Conditional Grant
Expenditure as at 31 December 2006

• The Department has spent 102 of original budget
  of R598,8 million.
• - R372 million was received in the adjusted
  budget specifically for the N2 Gateway
  Project and it is envisaged that more than half
  of this allocation will be spent by 31 March
  2007. The balance will be rolled over and
  spent in the 2007/08 financial year.

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CG Expenditure - Agriculture
Agriculture Conditional Grant Expenditure as at
31 December 2006
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CG Expenditure Agriculture (2)

• Challenges to Overcome
• Land Care Programme
• Expenditure is season dependent as invasive
  plants grow in summer and the eradication thereof
  can only take place once crops have been
  harvested
• Comprehensive Agriculture Support Programme
• Difficult to get community agreement on project
  plans
• Delay in tender process
• Some projects are still in the planning phase
• Agriculture Disaster Management Grant
• Implementation plans are in the process of being
  finalised with the National Department of
  Agriculture. Spending will commence in 2007/08.

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CG Expenditure - Education
Education Conditional Grant Expenditure as at
31 December 2006
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CG Expenditure Education (2)

• Challenges to Overcome
• Provincial Infrastructure Grant
• A number of projects are in the tender and
  awarding phase
• Seasonality of the Western Cape impacts
  infrastructure expenditure
• Department projects to spend entire budget by the
  end of the financial year

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CG Expenditure - Health
Health Conditional Grant Expenditure as at 31
December 2006
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CG Expenditure Health (2)

• Forensic Pathology Services
• Constraints in the appointing of staff for the
  Forensic Pathology Services Unit, there are
  currently 87 vacant posts in the programme.
• R26,8 million has been budgeted for the
  construction of six new Forensic Pathology
  Laboratories, the majority of these projects are
  still in the planning phase.
• Provincial Infrastructure Grant
• Due to changes in the priority list, some
  projects have been put on hold in 2006/07
• Experienced professionals are leaving the
  department
• The Department projects to spend the entire
  budget by the end of the financial year
  (overspend by R4 million).

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CG Expenditure Transport and Public Works
Transport and Public Works Conditional Grant
Expenditure as at 31 December 2006

• Challenges to overcome
• Slow spending is as a result of additional
  allocations
• received by the Department in the adjustments
  estimate.
• Department projects to spend full budget by the
  end of
• the financial year.

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CG Expenditure Cultural Affairs and Sport
Cultural Affairs and Sport Conditional Grant
Expenditure as at 31 December 2006

• Challenges to overcome
• Mass Sport and Recreation Participation Programme
  
• School Mass Participation Programme is in its
  first year of implementation. The Department did
  not have a dedicated unit to roll out clusters
  which resulted in delays.
• The 2nd and 3rd quarters saw a significant
  improvement in spending, with spending expected
  to accelerate in the final quarter.

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Infrastructure and Capital Expenditure
Infrastructure and capital expenditure as at 31
December 2006
Infrastructure expenditure includes maintenance
which is recorded as current expenditure in SCOA
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Infrastructure and Capital Expenditure

• Challenges to Overcome
• Bottlenecks in the procurement process, IDIP aims
  identify these bottlenecks and identify means to
  overcome them
• Inefficiencies in the link between planning
  budgeting and implementation and
• Skills shortage.
• Measures instituted
• Promotion of earlier planning cycle (IDIP).

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Service Delivery Information
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Conditional Grants
Service delivery information as at 31 December
2006
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Infrastructure Projects
Transport and Public Works - Service delivery
information as at 31 December 2006
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Infrastructure Projects
Service delivery information as at 31 December
2006
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Conditional GrantBusiness Plans 2006/07
Financial Year
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CG Business Plans

• Business plans 2006/07
• All business plans for 2006/07 have been approved
• Business plans 2007/08
• Department of Agriculture
• Land Care Grant
• Business plan submitted, verbal approval
  received, awaiting written approval.
• Comprehensive Agriculture Support Programme
• Business plan submitted, verbal approval
  received, awaiting written approval.

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CG Business Plans 2007/08

• Department of Education
• HIV and Aids (Life Skills Education) Grant
• Business plan submitted incorporating feedback
  received from National Department on the first
  draft
• National School Nutrition Programme Grant
• Business plan submitted, feedback received from
  national department.
• Further Education and Training
• First draft submitted timeously, feedback
  received from National Department, second draft
  submitted incorporating feedback.

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CG Business Plans 2007/08

• Department of Health
• Comprehensive HIV and Aids Grant
• Business plan submitted, awaiting feedback from
  the national Department of Health
• Forensic Pathology Services Grant
• Business plan completed in consultation with
  national Department of Health and submitted 23
  October 2006
• Signed copy submitted 17 November 2006
• National Tertiary Services Grant
• Awaiting Service Level Agreement from National
  Department of Health
• Health Professions Training and Development Grant
• Business plan format in process of finalisation
  by Department of Health

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CG Business Plans 2007/08

• Department of Local Government and Housing
• Integrated Housing and Human Settlement
  Development Grant
• Business plan submitted, awaiting feedback from
  national department
• Department of Cultural Affairs and Sport
• Mass Sport and Recreation Participation Programme
  Grant
• Business plan submitted, awaiting feedback from
  national department.
• National Treasury
• Provincial Infrastructure Grant
• Consolidated infrastructure plan submitted to
  National Treasury

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Monitoring Provincial Expenditure
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Monitoring Provincial Expenditure

• Continuous engagements with departments in a
  cooperative manner to jointly seek solutions and
  prevent fiscal dumping
• Quarterly reports to Top Management, Exco and
  Legislature
• Frequent interaction with departments on spending
  performance and general issues as highlighted by
  monthly IYMs
• Quarterly narrative reports to AOs and CFOs
• Quarterly meetings between MECs for finance,
  education, health and public works to discuss
  infrastructure spending and other difficulties
• Specific provincial initiatives to ameliorate the
  March spike and
• CFO intergovernmental forums.

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Discussion