PRESENTATION TO THE SELECT COMMITTEE ON FINANCE 08 MAY 2006

1
PRESENTATION TO THE SELECT COMMITTEE ON
FINANCE08 MAY 2006

• KWA-ZULU NATAL DEPARTMENT OF EDUCATION HEARINGS
  ON CONDITIONAL GRANTS AND CAPITAL EXPENDITURE OF
  DEPARTMENTS

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Allocation and Expenditure Trends
Description 2004/05 2004/05 2005/06 2006/07 2007/08
Description Adjusted Budget Estimated Actual 2005/06 2006/07 2007/08
Provincial Infrastructure (Total Budget) (Adjusted Total Budget) 282,594 282,594 315,121 (739,286) (854,286) 348,194 (782,243) 448,190 (842,459)
HIV and AIDS 29,188 29,188 31,126 32,995 34,644
NSNP 181,420 181,420 198,849 239,372 251,341
Sub Totals 493,202 493,202 545,096 620,560 734,175
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INFRASTRUCTUREPROGRAMME
4
2005/06 Q3 Prov. Expenditure Analysis Total
Infrastructure
Quarter 2005/06 Target 2005/06 Actual 2005/06 Cumulative
Q1 184,822 110,395 110,395
Q2 184,821 219,320 329,716
Q3 242,321 215,321 545,037
Q4 242,322 292,261 837,298
Total 854,286 837,298
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2005/06 Q4 Prov. Expenditure Analysis Total
Infrastructure

• The 4th Quarter report has followed detailed
  interaction
• with our agents and has revealed the following
• 98 expenditure vs budget
• Under-expenditure against capital projects
• Over-expenditure against current projects
• Total under-expenditure of R16,988m (excluding
  R36,000m FET)
• Service delivery targets exceeded

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2005/06 Q2 Prov. Expenditure Analysis
Infrastructure Delivery
Quarter 2005/06 Cumulative Target 2005/06 Cumulative Target 2005/06 Cumulative Actual 2005/06 Cumulative Actual
Quarter C/rooms Toilets C/rooms Toilets
Q1 400 790 482 374
Q2 850 1,730 1,027 985
Q3 1,350 2,300 1,314 1,503
Q4 1,500 2,500 1,571 3,001
Total 1,500 2,500 1,571 3,001
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Infrastructure Expenditure and Delivery
Monitoring

• The Department has formed the following to
• ensure that monthly performance monitoring is
• carried out
• Education/Works Provincial Joint Task Team
• Education/Provincial Treasury Joint Task Team
• Monthly and quarterly reporting to National
  Education and Treasury
• Internal Infrastructure Delivery Committee
• Actively implementing recommendations of IDIP

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HIV / AIDSPROGRAMME
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Q4. 2005/06 Conditional Grant HIV and AIDS

• The expenditure to date (Q4) analysis revealed
  the following
• Allocation for 2005/06 R31,126,000
• Plus roll-over R13,055,000
• TOTAL ALLOCATION R44,181,000
• Amount transferred at end of Q4 R31,126,000
• Expenditure as of end of Q4 R49, 208,000
• Spent of Total Allocation 111

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Q4. 2005/06 Conditional Grant HIV and AIDS

• The percentage of the amount spent to date (Q4)
  is 111.
• Reason for Over-expenditure
• Over expenditure on total allocation of R44,181
  000(R31,126 000 Roll over of R13,055 000) is
  R5,021 000.
• An amount of R15, 516 000 which was committed in
  the financial year 2004/5 was paid in this
  financial year, 2005/6 thus causing a deficit.
• We applied for a roll-over to offset the
  deficit, however only
• R13,055 000 was approved as a roll-over and
  could not offset all the outstanding payments
  thus resulting to over-expenditure of R2,461 000
  in 2005/6.
• Analysis
• Deficit as a result of insufficient rollover
  R2,461 000
• Over expenditure on original allocation (R31,126
  000) R2,566 000
• TOTAL OVER-EXPENDITURE R5,027
  000

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Q4. 2005/06 Conditional Grant Monitoring HIV
and AIDS

• Monthly reporting in accordance with Schedule 3A
  and 3C of DORA
• Approved business plan used as management and
  monitoring tool
• Monthly meetings held with all Districts and
  affected Directorates to table financial
  reports(cash flow) for monitoring spending
  according to the conditions of the Grant

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NATIONAL SCHOOL NUTRITION PROGRAMME
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Q4. 2005/06 Conditional Grant NSNP

• The Fourth Quarter expenditure analysis revealed
  the
• following
• Gazetted allocation for 2005/06 R 198,849,000
• Amount transferred at end of Q4 R 198,849,000
• Expenditure as of end of Q4 R 198,980,474
• Spent of Total Allocation 100,1
• Spent of Amount Transferred 100

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Expenditure and Committed Funds including
Additional Funding

• Gazetted Allocation R 198,849,000
• Additional Funding R 43,402,000
• Roll-over (from 2004/5) R 32,961,000
• TOTAL R
  275,212,000
• Expenditure as of end of Q4 R 198,980,474
• spending 72,3
• Committed (utensils) R 43,402,000
• Committed (outst.paym.) R 32,829,526
• Total Committed R 76,231,526
• Committed 27,7

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Q4. 2005/06 Conditional Grant NSNP

• The Department is unable to finalize all payments
  of suppliers by the end of the financial year
  because feeding continues up to the last day of
  the month( 31 March 2006). Therefore there is
  always an overlap of expenditure into the new
  financial year.
• In addition, some items and activities during the
  last term was not paid for by 31 March 2006.
• As a result of late transfer of the additional
  allocation (November 2005), the progress in using
  the additional funding only went as far as
  commitment of funds for the procurement, storage
  and transport of kitchen utensils by the end of
  the financial year (31 March 2006).

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Q4. 2005/06 Conditional Grant Monitoring NSNP

• Monthly reporting in accordance with Conditional
  Grant requirements
• Internal monitoring and coordination controlled
  from Head Office
• Monthly meetings held to table financial reports
  and to monitor spending according to the
  conditions of the Grant
• Quarterly reporting on the progress and
  compliance with DORA