MPUMALANGA PROVINCIAL GOVERMENT

1
MPUMALANGA PROVINCIAL GOVERMENT

• CONDITIONAL GRANT REPORT FOR THIRD QUARTER ENDING
  31 DECEMBER 2005

2
CONDITIONAL GRANT REPORT THIRD QUARTER ENDING
31 DECEMBER 2005

• FOCUS ON THE FOLLOWING
• DATA TRENDS IN ALLOCATIONS, TRANSFERS AND ACTUAL
  EXPENDITURE OF CONDITIONAL GRANTS, CAPITAL AND
  INFRASTRUCTURE EXPENDITURE
• ASSESSMENT OF DEPARTMENTS CAPACITY TO MONITOR
  (CONSTRAINTS) AND AN INDICATION OF STATUS OF
  EXEPENDITURE.
• MECHANISMS TO DEAL WITH CHALLENGES OUTCOMES
  OFTHESE MECHANISM
• RECEIPT OF MONTHLY REPORTS.
• CERTIFIED BUSINESS PLANS FOR CONDITIONAL GRANTS
• SERVICE LEVEL AGREEMENTS

3
CONDITIONAL GRANT REPORT THIRD QUARTER ENDING
31 DECEMBER 2005

• ANALYSIS INDICATE THAT
• ACTUAL EXPENDITURE, IN SOME CATEGORIES, IS
  USUALLY HIGHER THAN THE AMOUNTS TRANSFERRED, BY
  NATIONAL GOVERNMENT, AS CONDITIONAL GRANTS.
• THERE IS AN IMPROVEMENT IN OVERALL PERFORMANCE ON
  CONDITIONAL GRANTS DURING THIRD QUARTER ENDING 31
  DECEMBER 2005
• DEPARTMENTS ARE HAVE STARTED STRENGTHENING THEIR
  CAPACITIES TO MONITORING.
• EXECUTIVE COUNCIL REVIEWS PERFORMANCE ON
  CONDITIONAL GRANTS AND ISSUE INSTRUCTIONS TO
  DEPRTMENTS TO IMPLEMENT CORRECTIVE MEASURES.
• DEPARTMENTS HAVE INDICATED THAT POOR PERFORMING
  GRANTS WILL DRASTICALLY PICK UP IN THE FOURTH
  QUARTER AND THOSE THAT DEMONSTRATE A LIKELIHOOD
  OF OVERSPENDING WILL BE CONTAINED WITHIN THE
  ALLOCATED BUDGETS.
• .
• DEPARTMENTS SUBMIT MONTHLY REPORTS ON CONDITIONAL
  GRANTS AND INFRASTRUCTURE AND NONSUBMISSION
  RESULTS IN TRANSFERS BEING WITHHELD.
• THE TOTAL AMOUNT FOR CONDITIONAL GRANTS IS R5,087
  BILLION (INCLUDING ROLLOVERS) AND AN AMOUNT OF
  R3,328 BILLION HAS BEEN SPENT BY THE 31ST OF
  DECEMBER 2005. THIS ACCOUNTS FOR 65 OF THE
  TOTAL AMOUNT OF R5,087 BILLION.

4
CONDITIONAL GRANT REPORT THIRD QUARTER ENDING
31 DECEMBER 2005

• BUSINESS PLANS
• ALL CERTIFIED BUSINESS PLANS FOR CONDITIONAL
  GRANTS WERE SUBMITTED TO NATIONAL TREASURY.
• IMPLEMENTATION OF THE PROJECTS AS OUTLINED IN THE
  BUSINESS PLANS REMAINS A CHALLENGE TO THE
  PROVINCE

5
CONDITIONAL GRANT REPORT THIRD QUARTER ENDING
31 DECEMBER 2005

• SERVICE LEVEL AGREEMENTS
• PUBLIC WORKS DEPARTMENT ASSISTS DEPARTMENTS OF
  HEALTH AND EDUCATION IN MANAGING THEIR
  INFRASTRUCTURE PROJECTS.
• TWO SERVICE LEVEL AGREEMENTS SIGNED AMONGST
  DEPARTMENTS, ON MANAGEMENT OF INFRSTRUCTURE
  PROJECTS
• BETWEEN DEPARTMENTS OF HEALTH AND PUBLIC WORKS.
• BETWEEN DEPARTMENTS OF EDUCATION AND PUBLIC
  WORKS.

6
CONDITINAL GRANT REPORT THIRD QUARTER ENDING 31
DECCEMBER 2005

• HEALTH CONDITIONAL GRANTS

TOTAL AVAILABLE 2005/2006 PERCENTAGE SPENT
R000
Comprehensive HIV AIDS Grant 90,632 63.7
Hospital Management and Quality Improvement Grant 18,582 73.9
Hospital Revitalisation Grant 93,082 49.4
Integrated Nutrition Programme Grant 11,139 71.6
Health Professions Training Development Grant 54,363 79.3
National Tertiary Services Grant 44,225 89.4
Provincial Infrastructure 55,005 73.9
Forensic Pathology Services 3,534 3.0
7
CONDITIONAL GRANTS REPORT THIRD QUARTER ENDING
31 DECEMBER 2005

• HEALTH CONDITIONAL GRANTS (CONTINUED)
• Only two categories of the conditional grants
  spent more than 75 of their allocations within
  the 9 months of the financial year, i.e. Health
  Professions Training Development and National
  Tertiary Services.
• Forensic Pathology Services has spent 3 of the
  available amount. This so because the allocation
  was only done during the adjustment budget, and
  the expenditure will without any doubt pick up
  the fourth quarter.
• Comprehensive HIV/AIDS is in line with National
  Transfer Schedule.
• Hospital Management Quality Improvement Grant
  is slightly below target. This resulted from
  delays in delivery of e-health system. However,
  all other projects under this category are on
  target.
• Hospital Revitalisation Grants under-spending
  resulted from appointed contractors inability to
  submit guarantees and their failure to commence
  with projects in time hence failure to meet time
  lines.
• Integrated Nutrition Programmes spending was
  affected by delays in crockery delivery to
  hospitals.
• Health Professions Training Development is
  higher than what was received from national
  government. Spending trends are monitored to
  ensure that total spending is within allocated
  budget.
• National Tertiary Services Grant is also in the
  similar position as Health Professions Training
  Development.
• Provincial Infrastructure Grants expenditure is
  at acceptable target of 75. The Department
  expects to have exhausted the allocated funds
  (reached a 100 ) by the end of the 2005/2006
  financial year.

8
CONDITIONAL GRANT REPOERT THIRD QUARTER ENDING
31 DECEMBER 2005

• SOCIAL SERVICES CONDITIONAL GRANT

TOTAL AVAILABLE 2005/2006 PERCENTAGE SPENT
R000
HIV AIDS (Community Based Care) Grant 21,412 74.9
Social Assistance Administration Grant 246,139 50.2
Social Assistance Transfers Grant 3,609,491 70.7
Integrated Social Development Services Grant 38,954 80.2
9
CONDITIONAL GRANT REPORT THIRD QUARTER ENDING
31 DECEMBER 2005

• SOCIAL SERVICES CONDITIONAL GRANT (CONTINUED)
• The under expenditure on Social Assistance
  Administration grant results from delays in
  appointment of staff and that effect has a direct
  impact on expenditure for compensation of
  employees and expenditure on goods and services.
• Expenditure on Social Assistance Transfer grant
  is slightly below target. Strict monitoring and
  adherence to business plan will hopefully assist
  in detecting what the reasons may be for this
  trend.

10
CONDITIONAL GRANT REPORT THIRD QUARTER ENDING
31 DECEMBER 2005

• EDUCATION CONDITIONAL GRANTS
• There had been challenges for the Department of
  Education to comply with conditions of the
  infrastructure grant that lasted up end of the
  third quarter, resulting in National Treasury
  withholding funds. These funds will be
  transferred during the fourth quarter.

TOTAL AVAILABLE 2005/2006 PERCENTAGE SPENT
R000
HIV AIDS (Life Skills Education) Grant 10,317 78.7
National School Nutrition Programme Grant 86,947 68.9
Infrastructure Grant 185,659 19.0
11
CONDITIONAL GRANT REPORT THIRD QUARTER ENDING
31 DECEMBER 2005

• LOCAL GOVERNMENT HOUSING CONDITIONAL GRANTS
• The slightly below target expenditure for
  Integrated Housing Human Settlement Grant
  resulted from teething problems with contractors.
  The effects of corrective measures are starting
  to be apparent.

TOTAL AVAILABLE 2005/2006 PERCENTAGE SPENT
R000
Integrated Housing Human Settlement Grant 312,157 65
Human Settlement Redevelopment Grant 9,123 72
Municipal Support Grant 254 100
12
CONDITIONAL GRANT REPORT THIRD QUARTER ENDING
31 DECEMBER 2005

• AGRICULTURE LAND ADMINISTRATION CONDITIONAL
  GRANT
• Land Care Programmes expenditure are higher and
  a stricter monitoring and control will be
  necessary to ensure that it remains within
  allocated amounts.

TOTAL AVAILABLE 2005/2006 PERCENTAGE SPENT
R000
Land Care Programme Grant Poverty Relief infrastructure Development 7,790 89.6
Comprehensive Agriculture Support Programme Grant 26,120 63.0
Agriculture Disaster Management Grant 17,000 15.1
Provincial Infrastructure Grant 18,566 54.9
13
CONDITIONAL GRANTS REPORT THIRD QUARTER ENDING
31 DECEMBER 2005

• ROADS TRANSPORT CONDITIONAL GRANTS
• The allocated budget has already been exhausted
  (100). The 2 overspending resulted from
  misallocation of expenditure between conditional
  grants projects and equitable share projects.
  This misallocation error will be rectified before
  end January 2006.

TOTAL AVAILABLE 2005/2006 PERCENTAGE SPENT
R000
Infrastructure Grant 114,213 102.0
14
CONDITIONAL GRANT REPORT THIRD QUARTER ENDING
2005

• CULTURE, SPORT AND RECREATION CONDITIONAL GRANT
• The slight below target expenditure resulted from
  stipends for volunteers not paid in time for
  December 2005, and other activities that slowed
  down in the same month.

TOTAL AVAILABLE 2005/2006 PERCENTAGE SPENT
R000
Mass Sport and Recreation Participation programme Grant 3,180 69.8
15
CONDITIONAL GRANT REPORT - THIRD QUARTER ENDING
31 DECEMBER 2005

• CAPITAL BUDGET
• Department of Health was allocated R265,398M
  towards payment of capital assets. R184,196M,
  representing 69.4, has already been spent.
• Department of Education was allocated R342,078M
  towards payment for capital assets. R115,517M,
  representing 33.8, has already been spent.
• Department of Public Works is managing all
  infrastructure projects for both Departments of
  Education and Health.
• CONCLUSION
• The Select Committee on Finance is hereby
  requested to note this report on conditional
  grants and capital expenditure for third quarter
  ending 31 December 2005.