Outcome of Conditional Grants

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Outcome of Conditional Grants Capital
Expenditure as at 30 November 2005Section
40(4) of PFMA

• Select Committee on Finance
• National Council of Provinces
• Presented by
• Chris Adams
• Intergovernmental Relations
• National Treasury
• 17 January 2006

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National Treasurys Role

• National Treasury dev. Culture of
• publishing information
• Assessing credibility of prov. Budgets
• Ensure that each treasury prepares
• quarterly reports for its cabinet or exco.
• NT prepares a consolidated quarterly
• report for all provinces.

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Key highlights

• Presentation covers provincial spending for the
  first 8 months (1 April to 30 November 2005) of
  2005/06 financial year
• Spending is at R136bn (62,1) of adjusted budget
  (R219,2bn)
• The highest rate of spending is in KZN (63,2)
  NC and MPU (63,1)
• Lowest in FS GT (60,8)

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Provincial Aggregated Expenditure
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Key highlights

• Spending in social services sectors
• - Education at R46,7bn (64,6)
• - Health at R29,4bn (62,3)
• - Social Development R37,4bn (62,8)
• Personnel spending at R63,3bn (65,4)
• Capital expenditure is at R6,6bn (47,2)

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Provincial Aggregated Expenditure
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Social Services

• Social services adjusted budgets at R178,9bn -
  81,6 of total provincial budgets (education,
  health, social development)
• Provinces have spent R113,5bn or 63,4
• R12,3bn or 12,1 more compared to last year
• Spending accounts for 83,4 of total provincial
  spending
• Education at 34,3,
• Health at 21,6
• Social Development at 27,5
• NC (65,2), KZN (64,7) records the highest rate
  of spending while FS (62) and GT (62,1) the
  lowest

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(No Transcript)
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Health

• Spending at R29,4bn or 62,3 against R47,1bn
  adjusted budget
• Increase of R3,9bn or 15,4 compared to the
  previous year
• Lowest rate of health spending in LIM (55,6) and
  GT (61,6)
• NC (66,1) and MPU (65,5) reflects the highest
  rate of spending in health
• Health Personnel spending at R16,7bn or 65,2
  (R25,6bn adjusted budget)
• Capital spending at R1,7bn or 42,1
• Increase of 59,9 compared to spending for the
  same period last year
• Lowest rate of capital spending in LIM (27,9)
  and FS (35,3)
• MPU (58,4) and KZN (49) reflects the highest
  rate of capital spending in health

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Health
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Health Programme Analyses

• Prog 2 - Prov Dist Health Services
• Spending at R11,7bn or 63,9 of R18,2bn adjusted
  budget.
• Lowest rate of spending in NC (57,8) and highest
  in MP (67,4)
• Prog 4 - Prov Hospital Services
• Spending at R7,7bn or 65,6 of R11,7bn adjusted
  budget.
• Lowest rate of spending in KZN (61,1) and
  highest in FS (73,7)
• Prog 5 - Central Hospital Services
• Spending at R5,1bn or 65,1 of R7,8bn adjusted
  budget.
• Lowest rate of spending in LIM (57,9) and
  highest in FS (72,5)
• However Prog 8 Health Facilities Management
  shows highest
• overspending of R208m while spending R1,5bn (44)
  of R3,2bn
• budget.

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Provincial District Health Services (Programme 2)
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Provincial Hospital Services (Programme 4)
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Central Hospital Services (Programme 5)
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Provincial Health Personnel
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Provincial Health NPNC
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Personnel

• Provincial personnel spending totalled R63,3bn or
  65,4 of R96,7bn personnel adjusted budgets
• Increase of 9,1 or R5,3bn over comparative
  spending last year
• Projecting to overspend by R223,6m
• Lowest level of personnel spending in GT (63,4)
  and WC (63,6)
• LIM (68,5) and NW (66) reflects the highest
  level of personnel spending

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Personnel
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Payments for Capital Assets Trends (Capital
Expenditure)
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Payments for Capital Assets

• Provinces have spent R6,6bn or 47,2 of R13,9bn
  adjusted capital budgets
• Increase of R1,5bn or 30 to comparative spending
  during last year
• Low rate of capital spending in LIM (36,4) and
  FS(38,4)
• EC (58) and MPU (57,8) reflects the highest
  rate of capital spending

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Payments for Capital Assets - HEALTH

• Provinces have spent R1,7bn or 42,1 of R4,1bn
  adjusted capital budgets
• Increase of R1,1bn or 59,9 to comparative
  spending during last year
• Lowest rate of capital spending in LIM (27,9)
  and FS(35,3)
• MPU (58,4) and KZN (49) reflects the highest
  rate of capital spending
• EC and MP overspending while 6 depts are
  underspending and one breaking even

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Payments for Capital Assets
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Payments for Capital Assets - Health
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Conditional Grants
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Conditional Grants Flow of Info
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Conditional Grants

• Conditional grant allocations total R74,6bn (2005
  DoRA)
• Social assistance grants making up the bulk at
  R55,9bn
• Reported expenditure excludes Schedule 4 grants
  such as the NTS Grant and Provincial
  Infrastructure grant
• These grants are included in general provincial
  expenditure
• Specific grants that show low spending include
• - Hospital Revitalisation (Health) (44,3)
• - Hospital Management and QI (Health) (46,6)
• - Integrated Nutrition prog (53,6)

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Conditional Grants
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Conditional Grants - continued
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Conditional Grants

• 5 or more provinces have spent less than 50 for
  the following grants
• Hospital Revitalisation (Health)
• Hospital Management and Quality Improvement
  (Health)
• However the majority of grants reflects spending
  within the 50 and 70 range against the DORA.

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Conditional Grants
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Important dates and submissions
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Publication Dates for Provincial S32 Reports

• 2005/06 Financial Year
• 3rd Quarter (as at 31 December 2005)
• 30 January 2006
• 4th Quarter (as at 31 March 2006)
  28 April 2006

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Proposed Dates for QPRs

• Practice Note 3 of 2005 (issued with effect from
  01 August 2005)
• National departments administering conditional
  grants are required to table QPRs (including both
  financial and non-financial information) with the
  SCOF in the NCOP at the end of each quarter in
  line with the requirements of Sections 19(1)(c)
  and 21(2)(d) of the Act, Grant Frameworks and
  Treasury Regulation 5.3
• Departments are required to provide the NT with
  copies of the reports tabled at SCOF in NCOP.
  The quarterly reports for each quarter should be
  tabled by the dates provided
• The dates are as follows
• Third Quarter 07 February 2006
• Fourth Quarter 08 May 2006

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Detail on Conditional Grants by Grant Type
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Health GrantsNational Tertiary Services Grant

• Objective (Schedule 4 Grant)
• To fund national tertiary delivery in 27
  hospitals across the nine provinces, as
  identified by the national department of Health
  (DOH), in order to ensure equitable access to
  basic tertiary health services by all South
  Africans
• 8 month Expenditure
• Spending of this grants is subsumed in the
  spending of a range of programmes and therefore
  no reporting is required
• Health spent R3 117 m or 66,2 of the R4 709 m
  allocation
• Transfers amounted to 66,7
• Highest MPU 88,4 KZN 73,5 and NC 66,7
• Lowest LIM 28,7 and NW 48,9
• Service Delivery Outcome
• Department / Sector to respond

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Health GrantsHealth Professions Training and
Development Grant

• Objectives (Schedule 4 Grant)
• Support provinces to fund service costs
  associated with training of health professionals
• Enable shifting of teaching activities from
  central hospitals to regional and district
  facilities
• Development and recruitment of medical specialist
  in under-served provinces
• 8 month Expenditure
• Spending of this grants is subsumed in the
  spending of a range of programmes and therefore
  no reporting is required
• Health spent R1 008 m or 66,3 of the R1 520
  million allocation
• Transfers amounted to 66,7
• Highest FS 84,7 NW 72,1 and GT 66,7
• Lowest EC 49,9 and MPU 64,7
• Service Delivery Outcome
• Department / Sector to respond

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Health GrantsComprehensive HIV and Aids Grant

• Objective (Schedule 5 Grant)
• To Enable the health sector to develop an
  effective response to the HIV and Aids epidemic
  and other matters
• 8 month Expenditure
• Health spent R710,4 m or 62,6 of the R1 135 m
  allocation
• Transfers amounted to 59,6
• Highest KZN 78,6 GT 75,5 and WC 71,7
• Lowest LIM 36,8 and NC 41,8
• Service Delivery Outcome
• Department / Sector to respond

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Health GrantsHospital Revitalisation Grant

• Objective (Schedule 5 Grant)
• To transform and modernise infrastructure and
  equipment in hospitals in line with national
  policy and to achieve a sustainable
  infrastructure from which modern, equitable and
  sustainable services can be delivered
• 8 month Expenditure
• Health spent R490,2 m or 47,7 of the R1 027
  million allocation
• Transfers amounted to 61,2
• Highest GT 359,6 NC 79,3 and MPU 67,3
• Lowest FS 25,4 and EC 30,2
• Service Delivery Outcome
• Department / Sector to respond

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Health GrantsIntegrated Nutrition Programme Grant

• Objective (Schedule 5 Grant)
• To implement integrated nutrition activities
  aimed at improving the nutritional status of all
  South Africans
• 8 month Expenditure
• Health spent R66,2 m or 53,6 of the R123,4 m
  allocation
• Transfers amounted to 77,3
• Highest MPU 62,8 GT 60,7 and EC 54,5
• Lowest WC 43,8 NC 48,4 and NW 49,2
• Service Delivery Outcome
• Department / Sector to respond

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Health GrantsHospital Management and Quality
Improvement Grant

• Objective (Schedule 5 Grant)
• To transform hospital management and improve
  quality of care in line with national policy
• 8 month Expenditure
• Health spent R70 m or 46,6 of the R150,3 m
  allocation
• Transfers amounted to 75
• Highest MPU 142,7 NW 56,4 and EC 50,2
• Lowest GT 12 KZN 30,8 and WC 33,4
• Service Delivery Outcome
• Department / Sector to respond

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THANK YOUTHANK YOU

• THANK YOU