NCOP PRESENTATION ON CONDITIONAL GRANTS AND CAPITAL EXPENDITURE NORTH WEST'

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NCOP PRESENTATION ON CONDITIONAL GRANTS AND
CAPITAL EXPENDITURE NORTH WEST.

• FOURTH QUARTER ENDING 31 MARCH 2006
• 2006-05-03

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PURPOSE

• To provide information to the NCOP on data on
  trends in allocations, transfers and actual
  expenditure of all conditional grants and capital
  expenditure managed by the Department.
• A brief assessment of the monitoring capacity for
  2005/06.
• Over / under spending and the capacity
  constraints.
• 2006/07 Service Level Agreements and business
  plans progress.

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OVERVIEW

• 8 CONDITIONAL GRANTS MANAGED BY DOH NW.
• CONSTITUTES 14 OF TOTAL BUDGET.
• THERE HAS BEEN A MARKED INCREASE IN THE
  ALLOCATIONS FOR THE PROVINCE WITH A VIEW OF
  CLOSING THE EQUITY GAP WITH OTHER PROVINCES.
• SIGNIFICANT IMPROVEMENT IN SPENDING HAS BEEN
  REALISED FOR THE YEAR UNDER REVIEW (2005/06)
• STRENGTHENING OF PROJECT MANAGEMENT IN RELATION
  TO CONDITIONAL GRANTS HAS IMPROVED THE MONITORING
  CAPACITY.
• OF OVERALL UNDER EXPENDITURE REDUCED TO 9.

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TRENDS IN EXP. ALLOCATIONS

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TRENDS IN EXP, TRANSFERS. ALLOCATIONS

• TRANFERS FROM NATIONAL HEALTH HAS BEEN RECEIVED
  IN ALL FINANCIAL YEARS AND GRANTS WITH THE
  EXCEPTION OF THE FOLLOWING
• AN AMOUNT OF R5.915m WAS WITH HELD FOR HIVAIDS
  2004/05.
• AN AMOUNT OF R40m WAS WHITHHELD FOR
  REVITILIZATION 2005/06 AS PER AGREEMENT.

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EXPENDITURE FOR 2005/06 FOURTH QUARTER
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EXPENDITURE FOR 2005/06 FOURTH QUARTER
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OVER/UNDER EXPENDITURE

• Total allocation for the year under review was
  R422,738m
• Total amount unspent R36,322
• which is 8.59 of the overall allocation.
• The 05/06 conditional grants expenditure
  performance is the best in years.

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HOSPITAL REVITALIZATION GRANT.

• To provide funding to enable provinces to plan,
  manage, modernise, rationalise and transform the
  infrastructure, health technology, organizational
  management development and monitoring and
  evaluation of hospitals in line with national
  policy objectives.

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HOSPITAL REVITALIZATION
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HOSPITAL REVITALIZATION (cont)

• The balance of the allocation against expenditure
  amounts to 25.
• An amount of R25m has been processed for payment
  to the implementing agent already.
• The expenditure will be incurred as soon as
  transfers from NDoH is received.
• The full amount of R25,350m has been requested
  for a roll over from the provincial Treasury.

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HOSPITAL REVITALIZATION (cont)

• Capacity challenges
• Human Resource capacity both within and with
  implementing agents.
• Incapacity of some consultants and small emerging
  contractors to handle projects with the required
  competencies.

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Medico Legal Mortuaries

• Progress
• The Programme has the costed operational plan for
  the year and the necessary staff structure has
  been finalised.
• All facilities have been audited and are in the
  process of being upgraded.

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Medico Legal Mortuaries

• Challenges
• The funds from the conditional grant of the
  Programme were only received in December 2005.
• Achievements
• Commitments for equipment.
• Posts advertised already.
• Approved business plan.

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SERVICE LEVEL AGREEMENTS/ BUSINESS PLANS.

• A Service Level Agreement is in place between the
  Departments of Health and Public Works.
• Business plans have been forwarded to NDoH for
  all the conditional grants and awaiting approval.
• Transfers from NDoH have been received of all
  Conditional Grants during the month of April
  2006.

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EQUIPMENT BUDGET V/S EXPENDITURE FOR FIN. YEAR
05/06
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VARIENCE REPORT

• The ratio 70/30 was used to purchase ambulances
  and patient transport.
• The variance of R4,487 was earmarked for mobile
  clinics which could not be delivered before the
  end of the financial year.
• The procurement will therefore have to be made in
  the new financial year.

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VARIENCE REPORT cont

• The R9.8 million was used to purchase the 18
  ambulances and 14 planned patient transport.
• The budget for Office furniture was transferred
  to Public Works however, Public Works could not
  supply the Department due to insufficient
  allocation.
• Medical equipment were purchased for programs 2
  District Health Services and Program 4
  Provincial Hospital Services.

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VARIENCE REPORT cont

• The variance of R7 million will be rolled over
  into the current financial year to enable the
  Forensic Pathology Services to purchase mortuary
  vehicles.
• Also the variance of R2.8 million for conditional
  grants under program 8 - equipment for clinics
  would be rolled over into the current budget.
• The variance on other equipment is due to
  committed orders which had to be cancelled due to
  delivery after March 31st.

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CONCLUSION

• The Department is confident that systems are now
  in place to monitor the performance of
  conditional grants in line with DORA hence the
  improved outcome for the 2005/06 financial year.

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CONCLUSION CONT!!

• We will work closely with the CIDB (Construction
  Industry Development Board) to use their
  classification of contractor competence, in
  appointment of contractors.

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CLOSURE

• Thank you for listening