MPUMALANGA PROVINCE

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MPUMALANGA PROVINCE

• DEPARTMENT OF HEALTH AND SOCIAL SERVICES
• Health Services Vote 10
• Public Hearings on Conditional Grants and Capital
  Expenditure
• Presentation to the Select Committee on Finance
• 11 May 2007

"Siyanakekela"
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TABLE OF CONTENETS

• Budget and Expenditure Outcomes on Conditional
  Grants
• Budget and Expenditure Outcomes on Capital Budget
• Monitoring capacity for the financial year
  2006/07

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• Budget and Expenditure Outcomes on Conditional
  Grants

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Budget and Expenditure Outcomes Conditional
Grants
Conditional Grant Name 2006/07 Adjusted Budget Funds Received Pre-audited Amount spent 31 March 2007 Pre-audited Variance 31 March 2007 Pre-audited spent 31 March 2007 Spent 31 March 2006 Spent 31 March 2005 Increase/decrease from 05/06 to 2006/07 Increase/decrease from 04/05 to 2006/07 Increase/decrease from 04/05 to 2005/06
R000 R000 R000 R000
Comprehensive HIV/AIDS 107,709 107,709 110,709 0 100 86 86 14 14 0
National Tertiary Services 45,571 45,571 45,571 0 100 93 96 7 4 (3)
Health Professions Training and Development 54,363 54,363 54,363 2,079 96 82 100 14 (4) (18)
Hospital Revitalisation 72,896 72,896 72,895 1 100 74 59 26 41 33
Provincial Infrastructure 46,646 46,646 46,645 1 100 95 63 5 37 32
Forensic Pathology Services 41,531 41,531 23,195 18,335 56 43 100 13 (44) (57)
TOTAL 371,716 371,716 351,299 20,417 95 81 78 14 17 3
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Budget and Expenditure Outcomes Conditional
Grants

• Of the budgeted amount of R371,716 million an
  amount of R351,299 million i.e. 95 was spent at
  financial year end. This represents an increase
  of 14 from the percent expenditure of the
  2005/06 financial year.
• Four (4) conditional grants record 100
  expenditure while one (1) record 96 and one (1)
  records 56.
• Following grants are at 100
• Comprehensive HIV and AIDS,
• National Tertiary Services,
• Hospital Revitalization,
• Provincial Infrastructure.

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Budget and expenditure outcomes Conditional
Grants

• Health Professions Development and Training Grant
• At 96, The Health Professions Training and
  Development Grant records under spending of
  R2,079 million.
• The unspent funds are part of the funds allocated
  to Philadelphia Hospital which was transferred to
  Limpopo Province as part of the re-demarcation of
  municipal boundaries.
• The Department awaits a claim from the Limpopo
  Province to substantiate this amount.
• The Department has applied for the roll over of
  the amount of R2,079 million.

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Budget and Expenditure Outcomes Conditional
Grants

• Forensic Pathology Services
• At 56 and a variance of R18,335 million, the
  expenditure on this grant is low.
• The low expenditure is attributed to
• An amount of R13,205 million budgeted for
  infrastructural projects could not be spent
  because of delays in the appointment of service
  providers.
• There were delays with the procurement of
  equipment (including c-arms) for R3,347 million.
• Vehicles procured for R1,783 million are awaiting
  conversion (refrigeration).

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Budget and Expenditure Outcomes Conditional
Grants

• Forensic Pathology Services
• The unspent funds are committed and Treasury
  approval has been requested for the roll over
  amount of R18,335 million.
• The service providers for the capital projects
  (building of mortuaries at Ermelo and Secunda)
  have not been appointed yet.
• The appointment of these contractors is expected
  to be finalized by June 2007.
• The unspent funds are committed and Treasury
  approval has been requested for the roll over of
  the amount of R18,335 million.

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Challenges

• Conditional grants
• HR capacity constraints to implement and monitor
  business plans adequately.
• Definitions of tertiary services not
  standardized, therefore data collection not
  uniform between provinces.
• Insufficient capacity (electronic systems and HR)
  to accurately collect and analyse data.
• Recruitment and retention of professionals is a
  challenge impacting on delivery on certain grants
  such as HIV and AIDS Grant.
• National short supply of specialists is a
  challenges on the development of tertiary
  services in the province.

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• Budget and expenditure outcomes on Capital Budget

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Budget and Expenditure Outcomes Capital
BudgetHealth Component
2006/07 Adjusted Budget Pre-audited Amount spent 31 March 2007 Pre-audited Variance 31 March 2007 Pre-audited spent 31 March 2007 Spent 31 March 2006 Spent 31 March 2005 Increase/decrease from 05/06 to 2006/07 Increase/decrease from 04/05 to 2006/07 Increase/ decrease from 04/05 to 2005/06
R000 R000 R000
Buildings and fixed structures 134,350 155,637 (21,287) 116 103 262 13 (146) (159)
Machinery and equipment 135,863 89,110 46,753 66 87 43 (21) 23 44
Software and other intangible assets 0 130 0 (100) 292 105 (192) (5) 187
TOTAL 270,213 244,877 25,336 91 96 74 (5) 17 22
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Challenges

• Capital Budget
• Late appointment of contractors for
  infrastructural projects led to the under
  expenditure
• Poor workmanship by contractors delays service
  delivery for facilities

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• Monitoring capacity for the financial year
  2006/07

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Monitoring Capacity

• Weekly discussion sessions are conducted to
  monitor the progress on conditional grants
• Quarterly performance reviews are conducted to
  monitor progress on both financial and non
  financial information

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• THANK YOU