presentation to the select committee on finance on mpumalanga provincial budget and expenditure...

Presentation to the Select Committee on Finance onMpumalanga Provincial Budget and Expenditure

Outcomes for the 12 months ended 31 March 2015 Pre-Audited

17 June 2015

SUMMARY

In aggregate, Provincial Votes have spent 97.9% of R 36.374 billion of the combined

adjusted budgets (first and second adjustments) of R 37.138 billion in the 2014/15

financial year.

a) This represents a spending increase year-on-year of R 2.7 billion over the audited

R 33.707 billion spent during 2013/14 financial year.

b) The spending on adjusted budgets remains a challenge. R 668.4 million was added

to the Votes’ baseline; yet R 763.8 million remained unspent at R 31 March 2015.

c) The Provincial Treasury has evaluated the commitments that have been disclosed in

the pre-audited annual financial statements and can confirm that some of the funds

are committed and will be recommended for roll overs.

d) This is pre-audited outcome that is now the mirror image as disclosed in the annual

financial statements submitted for audit to the Office of the Auditor General on 31

May 2015 in line with section 40 of the PFMA.

3

MPUMALANGA PROVINCIAL EXPENDITURE AS AT 31 MARCH 2015

R Thousands

Main Budget 2014/15

Total Adjustments

Adjusted Budget

Actual to the end of Mar 2015

Outcome as %

Budget

Projections to end of Mar 2015

(Over) / under-

spending

% (Over) / under-

spending

Main Budget 2013/14

Total Adjustme

nts

Adjusted Budget


Outcome as %

Budget


(Over) / under-

spending

% (Over) / under-

spending

Social Services 26 326 506 189 715 26 516 221 26 009 482 98.1% - 506 739 1.9% 24 135 755 258 749 24 394 504 24 131 148 98.9% - 263 356 1.1%

EDUCATION 16 102 831 160 534 16 263 365 15 909 887 97.8% - 353 478 2.2% 14 896 956 205 941 15 102 897 14 932 789 98.9% - 170 108 1.1%

HEALTH 8 991 610 40 937 9 032 547 8 879 292 98.3% - 153 255 1.7% 8 084 505 37 469 8 121 974 8 065 397 99.3% - 56 577 0.7%

SOCIAL DEVELOPMENT 1 232 065 (11 756) 1 220 309 1 220 303 100.0% - 6 0.0% 1 154 294 15 339 1 169 633 1 132 962 96.9% - 36 671 3.1%

Non-Social Services 10 143 308 478 706 10 622 014 10 364 907 97.6% - 257 107 2.4% 9 523 610 307 401 9 831 011 9 577 930 97.4% - 253 081 2.6%

OFFICE OF THE PREMIER 205 372 11 448 216 820 210 895 97.3% - 5 925 2.7% 200 492 77 935 278 427 277 643 99.7% - 784 0.3%

MPUMALANGA PROVINCIAL LEGISLATURE 273 488 17 633 291 121 288 670 99.2% - 2 451 0.8% 243 434 7 971 251 405 250 877 99.8% - 528 0.2%

FINANCE 268 169 3 855 272 024 264 753 97.3% - 7 271 2.7% 266 868 (11 863) 255 005 251 752 98.7% - 3 253 1.3% CO-OPERATIVE GOVERNANCE AND TRADITIONAL AFFAIRS 418 792 46 295 465 087 461 081 99.1% - 4 006 0.9% 425 908 (199) 425 709 399 359 93.8% - 26 350 6.2%

AGRICULTURE, RURAL DEVELOPMENT, LAND AND ENVIRONMENTAL AFFAIRS 1 071 404 (35 986) 1 035 418 1 004 444 97.0% - 30 974 3.0% 1 050 045 (36 648) 1 013 397 928 295 91.6% - 85 102 8.4%

ECONOMIC DEVELOPMENT AND TOURISM 861 772 (97 479) 764 293 761 035 99.6% - 3 258 0.4% 821 567 10 542 832 109 831 040 99.9% - 1 069 0.1%

PUBLIC WORKS, ROADS AND TRANSPORT 4 193 637 47 954 4 241 591 4 241 161 100.0% - 430 0.0% 3 971 072 (22 862) 3 948 210 3 947 164 100.0% - 1 046 0.0% COMMUNITY SAFETY, SECURITY AND LIAISON 1 027 959 (8 954) 1 019 005 964 662 94.7% - 54 343 5.3% 841 748 262 800 1 104 548 1 099 183 99.5% - 5 365 0.5%

CULTURE, SPORT AND RECREATION 442 208 1 368 443 576 411 103 92.7% - 32 473 7.3% 351 808 27 699 379 507 373 622 98.4% - 5 885 1.6%

HUMAN SETTLEMENTS 1 380 507 492 572 1 873 079 1 757 103 93.8% - 115 976 6.2% 1 350 668 (7 974) 1 342 694 1 218 995 90.8% - 123 699 9.2%TOTAL 36 469 814 668 421 37 138 235 36 374 389 97.9% - 763 846 2.1% 33 659 365 566 150 34 225 515 33 709 078 98.5% - 516 437 1.5%

4

April May June July August September October November December January February March

Original Projections 2769 953 3771 464 2861 539 3104 402 2888 824 3154 511 2966 627 3375 093 2975 941 2851 083 2880 120 2870 257

Variable Projections 2769 953 3837 926 3340 086 3186 510 3429 350 3788 377 3910 550 3653 808 3973 805 4012 165 4701 579 4298 883

Actual Expenditure 2593 796 3432 803 3016 283 2897 726 2601 592 3141 273 3150 067 2655 276 3657 156 2345 237 3145 505 3737 675

Cash Transferred 2757 385 3192 436 3248 695 2828 792 2649 933 3359 402 2963 486 3130 085 3447 556 2465 892 3359 198 3708 466

-

500 000

1000 000

1500 000

2000 000

2500 000

3000 000

3500 000

4000 000

4500 000

5000 000

Am

ount

s in

R T

hous

ands

MPUMALANGA

Accruals: 2014/15

VOTE 2014/15 2013/14 R'000 R'000

30 days 30+ days Total TotalOffice of the Premier 7 669 - 7 669 433

Finance 3 502 123 3 625 2 463

Co-operative Governance and Traditional Affairs 1 510 12 1 522 2 086

Agriculture, Rural Development, Land and Environmental Affairs

10 959 8 681 19 640 28 053

Economic Development and Tourism - 2 929 2 929 717 Education 66 103 1 014 67 117 289 476 Public Works, Roads and Transport 175 993 57 905 233 898 18 578 Community Safety, Security and Liaison 69 067 103 890 172 957 86 364 Health 125 608 231 840 357 448 473 039 Social Development 17 715 146 17 861 6 133 Human Settlements 55 651 26 347 81 998 6 318 Culture, Sport and Recreation 6 503 - 6 503 9 884TOTAL 540 280 432 887 973 167 923 544

6

R ThousandsMain Budget

2014/15Total

AdjustmentsAdjusted Budget

Actual to the end of Mar

2015Outcome as % Budget

Projections to end of Mar

2015

(Over) / under-

spending

% (Over) / under-

spendingSocial Services 26 326 506 189 715 26 516 221 26 009 482 98.1% - 506 739 1.9%

EDUCATION 16 102 831 160 534 16 263 365 15 909 887 97.8% - 353 478 2.2% HEALTH 8 991 610 40 937 9 032 547 8 879 292 98.3% - 153 255 1.7% SOCIAL DEVELOPMENT 1 232 065 -11 756 1 220 309 1 220 303 100.0% - 6 0.0%

Non-Social Services 10 143 308 478 706 10 622 014 10 364 907 97.6% - 257 107 2.4%

TOTAL 36 469 814 668 421 37 138 235 36 374 389 97.9% - 763 846 2.1%

MPUMALANGA PROVINCIAL EXPENDITURE AS AT 31 MARCH 2015 by SECTOR

-

2000 000

4000 000

6000 000

8000 000

10000 000

12000 000

14000 000

16000 000

18000 000

EDUCATION HEALTH SOCIAL DEVELOPMENT Non-Social Services

Am

ou

nt

in R

Th

ou

san

ds

Departments

Provincial Main Budget vs Expenditure Main Budget 2014/15 Adjusted Budget Actual to the end of Mar 2015

7

ECONOMIC CLASSIFICATION - PROVINCIAL

R Thousands

Main Budget 2014/15

Total Adjustments

Adjusted Budget


Outcome as %

Budget


(Over) / under-

spending

% (Over) / under-

spending

Main Budget 2013/14

Total Adjustme

nts

Adjusted Budget


Outcome as %

Budget


(Over) / under-

spending

% (Over) / under-

spending

Compensation of employees 21 896 766 (421 083) 21 475 683 21 336 281 99.4% - 139 402 0.6% 20 214 158 (236 403) 19 977 755 19 858 198 99.4% - 119 557 0.6%

Goods and services 7 107 710 196 092 7 303 802 7 234 234 99.0% - 69 568 1.0% 6 572 347 499 666 7 072 013 7 031 528 99.4% - 40 485 0.6%

Interest and rent on land - - - 2 716 - ( 2 716) - - - 461 - ( 461)

Total transfers and subsidies 4 408 600 488 940 4 897 540 4 810 106 98.2% - 87 434 1.8% 4 167 573 8 688 4 176 261 4 048 573 96.9% - 127 688 3.1%

Payments for capital assets 3 051 738 408 377 3 460 115 2 962 531 85.6% - 497 584 14.4% 2 695 602 306 644 3 002 246 2 767 764 92.2% - 234 482 7.8%

Payments for financial assets 5 000 (3 905) 1 095 28 521 2604.7% - ( 27 426) -2504.7% 9 685 (12 445) (2 760) 2 554 -92.5% - ( 5 314) 192.5%

Total 36 469 814 668 421 37 138 235 36 374 389 97.9% - 763 846 2.1% 33 659 365 566 150 34 225 515 33 709 078 98.5% - 516 437 1.5%

99.4% 99.0% 98.2%

85.6%

60.0%

80.0%

100.0%

120.0%

Compensation ofemployees

Goods and services Total transfers andsubsidies

Payments for capital assets

Expe

nditu

re as

% o

f bud

get

Economic Classifications

Provincial Economic Classification Actual Expenditure as Percentage of the Budget

Compensation of employees , 21 336

281

Goods and services , 7 234 234

Interest and rent on land , 2 716

Total transfers and subsidies , 4 810 106

Payments for capital assets , 2 962 531

Payments for financial assets , 28

521

Provincial Economic Classifications Expenditure Share

8

R Thousands

Main Budget 2014/15

Total Adjustments

Adjusted Budget


Outcome as %

Budget


(Over) / under-

spending

% (Over) / under-

spending

Main Budget 2013/14

Total Adjustme

nts

Adjusted Budget


Outcome as %

Budget


(Over) / under-

spending

% (Over) / under-

spending

Social Services 18 912 477 (264 255) 18 648 222 18 526 963 99.3% - 121 259 0.7% 17 440 123 (143 772) 17 296 351 17 190 998 99.4% - 105 353 0.6%

EDUCATION 12 733 191 (145 744) 12 587 447 12 488 913 99.2% - 98 534 0.8% 11 939 540 (98 834) 11 840 706 11 753 910 99.3% - 86 796 0.7%

HEALTH 5 663 449 (103 062) 5 560 387 5 537 663 99.6% - 22 724 0.4% 5 043 020 (45 875) 4 997 145 4 989 241 99.8% - 7 904 0.2%

SOCIAL DEVELOPMENT 515 837 (15 449) 500 388 500 387 100.0% - 1 0.0% 457 563 937 458 500 447 847 97.7% - 10 653 2.3%

Non-Social Services 2 984 289 (156 828) 2 827 461 2 809 318 99.4% - 18 143 0.6% 2 774 035 (92 631) 2 681 404 2 667 200 99.5% - 14 204 0.5%

OFFICE OF THE PREMIER 125 359 (6 732) 118 627 118 236 99.7% - 391 0.3% 116 319 (5 355) 110 964 110 959 100.0% - 5 0.0%

MPUMALANGA PROVINCIAL LEGISLATURE 132 029 (16 121) 115 908 115 908 100.0% - - 0.0% 112 440 (10 350) 102 090 101 616 99.5% - 474 0.5%

FINANCE 154 436 (12 545) 141 891 140 690 99.2% - 1 201 0.8% 144 383 (8 416) 135 967 135 842 99.9% - 125 0.1% CO-OPERATIVE GOVERNANCE AND TRADITIONAL AFFAIRS 325 011 (1 352) 323 659 323 635 100.0% - 24 0.0% 274 376 27 122 301 498 297 679 98.7% - 3 819 1.3%

AGRICULTURE, RURAL DEVELOPMENT, LAND AND ENVIRONMENTAL AFFAIRS 487 148 25 471 512 619 498 615 97.3% - 14 004 2.7% 452 892 8 556 461 448 453 359 98.2% - 8 089 1.8%

ECONOMIC DEVELOPMENT AND TOURISM 178 989 (68 432) 110 557 109 953 99.5% - 604 0.5% 169 201 (4 854) 164 347 163 896 99.7% - 451 0.3%

PUBLIC WORKS, ROADS AND TRANSPORT 893 403 (54 182) 839 221 839 217 100.0% - 4 0.0% 863 158 (58 323) 804 835 804 835 100.0% - - 0.0% COMMUNITY SAFETY, SECURITY AND LIAISON 376 940 (10 085) 366 855 366 680 100.0% - 175 0.0% 349 007 (12 185) 336 822 336 396 99.9% - 426 0.1%

CULTURE, SPORT AND RECREATION 150 176 (3 295) 146 881 145 187 98.8% - 1 694 1.2% 142 540 (16 196) 126 344 125 533 99.4% - 811 0.6%

HUMAN SETTLEMENTS 160 798 (9 555) 151 243 151 197 100.0% - 46 0.0% 149 719 (12 630) 137 089 137 085 100.0% - 4 0.0%TOTAL 21 896 766 (421 083) 21 475 683 21 336 281 99.4% - 139 402 0.6% 20 214 158 (236 403) 19 977 755 19 858 198 99.4% - 119 557 0.6%

COMPENSATION OF EMPLOYEES

Given the continued underspending on Compensation of employees, the Executive CouncilHas declared a moratorium on all vacant posts. A process of rationalisation has been introduced where a database has been created from existing personnel and officials are transferred to areas where a need exists. Each department is expected to go through a ‘fit for purpose exercise.

This work has commenced in 3 votes, Economic Development and Tourism in order to deal with duplications between parent department and its entities.

Department of Cooperative Governance and Traditional Affairs is also amongst the 3 votes whose business is being re-ingeneered. Presence of CDWs and Izinduna does tend to distort the compensation of employees budget, Some officials have already been transferred to Provincial Treasury in line with the reconfiguration of work in relation to support to municipalities (Back to Basics Programme) Role and responsibilities between COGTA and Provincial Treasury have been re-defined.

All votes have declared what they deem to be critical posts and from that list further refined the critical post list between posts that can be filled through the rationalisation process or advertisements through a normal recruitment process.Provincial Treasury has designed a recruitment tool which indicates time that it takes to fill a vacant funded post.

10

R Thousands

Main Budget 2014/15

Total Adjustments

Adjusted Budget


Outcome as %

Budget


(Over) / under-

spending

% (Over) / under-

spending

Main Budget 2013/14

Total Adjustme

nts

Adjusted Budget


Outcome as %

Budget


(Over) / under-

spending

% (Over) / under-

spending

Social Services 4 168 892 266 779 4 435 671 4 399 356 99.2% - 36 315 0.8% 3 938 072 157 106 4 095 178 4 094 449 100.0% - 729 0.0%

EDUCATION 1 470 212 115 659 1 585 871 1 573 955 99.2% - 11 916 0.8% 1 473 845 157 625 1 631 470 1 616 997 99.1% - 14 473 0.9%

HEALTH 2 535 225 131 579 2 666 804 2 642 172 99.1% - 24 632 0.9% 2 274 128 (48 856) 2 225 272 2 243 510 100.8% - ( 18 238) -0.8%

SOCIAL DEVELOPMENT 163 455 19 541 182 996 183 229 100.1% - ( 233) -0.1% 190 099 48 337 238 436 233 942 98.1% - 4 494 1.9%

Non-Social Services 2 938 818 (70 687) 2 868 131 2 834 878 98.8% - 33 253 1.2% 2 634 275 342 560 2 976 835 2 937 079 98.7% - 39 756 1.3%

OFFICE OF THE PREMIER 71 830 16 878 88 708 84 032 94.7% - 4 676 5.3% 74 473 79 289 153 762 153 279 99.7% - 483 0.3%

MPUMALANGA PROVINCIAL LEGISLATURE 98 706 22 307 121 013 130 287 107.7% - ( 9 274) -7.7% 86 923 22 170 109 093 110 928 101.7% - ( 1 835) -1.7%

FINANCE 105 797 13 198 118 995 114 343 96.1% - 4 652 3.9% 118 691 (8 584) 110 107 107 174 97.3% - 2 933 2.7% CO-OPERATIVE GOVERNANCE AND TRADITIONAL AFFAIRS 70 085 11 488 81 573 82 288 100.9% - ( 715) -0.9% 74 502 (2 810) 71 692 64 948 90.6% - 6 744 9.4%

AGRICULTURE, RURAL DEVELOPMENT, LAND AND ENVIRONMENTAL AFFAIRS 233 277 (35 336) 197 941 195 639 98.8% - 2 302 1.2% 236 996 (16 297) 220 699 192 907 87.4% - 27 792 12.6%

ECONOMIC DEVELOPMENT AND TOURISM 106 861 (14 504) 92 357 89 214 96.6% - 3 143 3.4% 82 526 15 896 98 422 92 323 93.8% - 6 099 6.2%

PUBLIC WORKS, ROADS AND TRANSPORT 1 518 782 (108 596) 1 410 186 1 408 376 99.9% - 1 810 0.1% 1 317 634 (32 880) 1 284 754 1 283 708 99.9% - 1 046 0.1% COMMUNITY SAFETY, SECURITY AND LIAISON 531 354 13 645 544 999 532 443 97.7% - 12 556 2.3% 460 851 274 126 734 977 730 701 99.4% - 4 276 0.6%

CULTURE, SPORT AND RECREATION 150 935 10 334 161 269 147 167 91.3% - 14 102 8.7% 131 705 13 872 145 577 153 366 105.4% - ( 7 789) -5.4%

HUMAN SETTLEMENTS 51 191 (101) 51 090 51 089 100.0% - 1 0.0% 49 974 (2 222) 47 752 47 745 100.0% - 7 0.0%TOTAL 7 107 710 196 092 7 303 802 7 234 234 99.0% - 69 568 1.0% 6 572 347 499 666 7 072 013 7 031 528 99.4% - 40 485 0.6%

GOODS AND SERVICES

Goods and servicesa) Procurement plans were introduced in 2011 and the Provincial Treasury continues to enforce

improvements as well as adherence by departments.b) Procurement plans require items in excess of R500 000 however in our Province we also

introduced procurement plans for items above R30 000 and below R500 000 as the bulk of items are in this threshold

c) We believe that this will cover most items and bring about more transparency in procurement of goods and services

d) The Province is enforcing the conclusion of supply chain processes during the first quarter of the financial year in order to reduce incidents of March Spike.

e) There is still room for improvement with regards to state of readiness of some tenders which would tend to delay the finalisation of bid bulletins

f) This matter is immediately escalated to the Administration Head and when non compliance persists the matter would then be escalated to the Executive Authority g) Funds have been set aside in 2015/16 to improve capacity of Bid Committees.

12

R Thousands

Main Budget 2014/15

Total Adjustments

Adjusted Budget


Outcome as %

Budget


(Over) / under-

spending

% (Over) / under-

spending

Main Budget 2013/14

Total Adjustme

nts

Adjusted Budget


Outcome as %

Budget


(Over) / under-

spending

% (Over) / under-

spending

Social Services 1 667 288 94 557 1 761 845 1 757 802 99.8% - 4 043 0.2% 1 493 011 17 461 1 510 472 1 538 889 101.9% - ( 28 417) -1.9%

EDUCATION 974 991 71 520 1 046 511 1 040 126 99.4% - 6 385 0.6% 873 680 (6 584) 867 096 865 818 99.9% - 1 278 0.1%

HEALTH 231 162 30 635 261 797 264 468 101.0% - ( 2 671) -1.0% 200 071 39 748 239 819 278 279 116.0% - ( 38 460) -16.0%

SOCIAL DEVELOPMENT 461 135 (7 598) 453 537 453 208 99.9% - 329 0.1% 419 260 (15 703) 403 557 394 792 97.8% - 8 765 2.2%

Non-Social Services 2 741 312 394 383 3 135 695 3 052 304 97.3% - 83 391 2.7% 2 674 562 (8 773) 2 665 789 2 509 684 94.1% - 156 105 5.9%

OFFICE OF THE PREMIER 4 156 3 719 7 875 7 825 99.4% - 50 0.6% 3 750 302 4 052 4 051 100.0% - 1 0.0%

MPUMALANGA PROVINCIAL LEGISLATURE 37 894 174 38 068 37 819 99.3% - 249 0.7% 36 904 250 37 154 37 154 100.0% - - 0.0%

FINANCE 3 509 3 208 6 717 6 646 98.9% - 71 1.1% 184 3 686 3 870 3 860 99.7% - 10 0.3% CO-OPERATIVE GOVERNANCE AND TRADITIONAL AFFAIRS 22 078 977 23 055 22 815 99.0% - 240 1.0% 11 197 2 600 13 797 13 469 97.6% - 328 2.4%

AGRICULTURE, RURAL DEVELOPMENT, LAND AND ENVIRONMENTAL AFFAIRS 299 139 (56 625) 242 514 230 798 95.2% - 11 716 4.8% 324 392 (54 146) 270 246 224 523 83.1% - 45 723 16.9%

ECONOMIC DEVELOPMENT AND TOURISM 556 046 100 556 146 556 540 100.1% - ( 394) -0.1% 550 740 20 000 570 740 572 525 100.3% - ( 1 785) -0.3%

PUBLIC WORKS, ROADS AND TRANSPORT 642 247 1 154 643 401 642 975 99.9% - 426 0.1% 605 680 16 009 621 689 621 689 100.0% - - 0.0% COMMUNITY SAFETY, SECURITY AND LIAISON 3 000 (14) 2 986 2 986 100.0% - - 0.0% 1 500 859 2 359 2 327 98.6% - 32 1.4%

CULTURE, SPORT AND RECREATION 10 610 (1 239) 9 371 8 720 93.1% - 651 6.9% 11 600 (200) 11 400 10 675 93.6% - 725 6.4%

HUMAN SETTLEMENTS 1 162 633 442 929 1 605 562 1 535 180 95.6% - 70 382 4.4% 1 128 615 1 867 1 130 482 1 019 411 90.2% - 111 071 9.8%TOTAL 4 408 600 488 940 4 897 540 4 810 106 98.2% - 87 434 1.8% 4 167 573 8 688 4 176 261 4 048 573 96.9% - 127 688 3.1%

TRANSFERS AND SUBSIDIES

TRANSFERS AND SUBSIDIESa) A trend has been noted that several NGOs, NPOs and NPIs are unable to access

government funding due to non compliance to funding requirements such as submission of audited financial statements.

b) In order to address this during the past three years, the Provincial Treasury spent R14.5 million on financial governance support to NGOs and schools.

c) Gap analysis covering one thousand five hundred and thirty one (1531) schools and seven hundred and forty two (742) NGOs, of which 39 NGOs and 201 schools that were identified for support and assisted to prepare their financial statements, including auditing thereof.

d) Two thousand five hundred and seventy one (2571) administrative clerks trained in basic accounting principles and proper record keeping during the same period.

e) During 2015/16 27 NGOs will be assisted in the Culture, Sport and Recreation sector with capacity development on reporting and auditing of their financial accounts.

14

R Thousands

Main Budget 2014/15

Total Adjustments

Adjusted Budget


Outcome as %

Budget


(Over) / under-

spending

% (Over) / under-

spending

Main Budget 2013/14

Total Adjustme

nts

Adjusted Budget


Outcome as %

Budget


(Over) / under-

spending

% (Over) / under-

spending

Social Services 1 577 849 92 634 1 670 483 1 297 645 77.7% - 372 838 22.3% 1 262 694 229 479 1 492 173 1 306 021 87.5% - 186 152 12.5%

EDUCATION 924 437 119 099 1 043 536 780 092 74.8% - 263 444 25.2% 609 891 153 734 763 625 695 932 91.1% - 67 693 8.9%

HEALTH 561 774 (18 215) 543 559 434 074 79.9% - 109 485 20.1% 567 286 92 452 659 738 554 038 84.0% - 105 700 16.0%

SOCIAL DEVELOPMENT 91 638 (8 250) 83 388 83 479 100.1% - ( 91) -0.1% 85 517 (16 707) 68 810 56 051 81.5% - 12 759 18.5%

Non-Social Services 1 473 889 315 743 1 789 632 1 664 886 93.0% - 124 746 7.0% 1 432 908 77 165 1 510 073 1 461 743 96.8% - 48 330 3.2%

OFFICE OF THE PREMIER 4 027 (2 417) 1 610 802 49.8% - 808 50.2% 5 950 3 699 9 649 9 354 96.9% - 295 3.1%

MPUMALANGA PROVINCIAL LEGISLATURE 4 859 11 273 16 132 4 656 28.9% - 11 476 71.1% 7 167 (4 099) 3 068 1 179 38.4% - 1 889 61.6%

FINANCE 4 427 (10) 4 417 3 070 69.5% - 1 347 30.5% 3 610 1 451 5 061 4 876 96.3% - 185 3.7% CO-OPERATIVE GOVERNANCE AND TRADITIONAL AFFAIRS 1 618 35 182 36 800 32 343 87.9% - 4 457 12.1% 65 833 (27 111) 38 722 23 088 59.6% - 15 634 40.4%

AGRICULTURE, RURAL DEVELOPMENT, LAND AND ENVIRONMENTAL AFFAIRS 51 840 30 504 82 344 78 705 95.6% - 3 639 4.4% 32 935 28 069 61 004 57 386 94.1% - 3 618 5.9%

ECONOMIC DEVELOPMENT AND TOURISM 14 876 (9 643) 5 233 5 328 101.8% - ( 95) -1.8% 14 100 (10 500) 3 600 2 277 63.3% - 1 323 36.8%

PUBLIC WORKS, ROADS AND TRANSPORT 1 139 205 208 487 1 347 692 1 349 502 100.1% - ( 1 810) -0.1% 1 184 600 50 542 1 235 142 1 235 142 100.0% - - 0.0% COMMUNITY SAFETY, SECURITY AND LIAISON 116 665 (12 500) 104 165 62 520 60.0% - 41 645 40.0% 30 390 - 30 390 29 759 97.9% - 631 2.1%

CULTURE, SPORT AND RECREATION 130 487 (4 432) 126 055 108 323 85.9% - 17 732 14.1% 65 963 30 223 96 186 84 048 87.4% - 12 138 12.6%

HUMAN SETTLEMENTS 5 885 59 299 65 184 19 637 30.1% - 45 547 69.9% 22 360 4 891 27 251 14 634 53.7% - 12 617 46.3%TOTAL 3 051 738 408 377 3 460 115 2 962 531 85.6% - 497 584 14.4% 2 695 602 306 644 3 002 246 2 767 764 92.2% - 234 482 7.8%

PAYMENTS FOR CAPITAL ASSETS

RECOMMENDATIONS

The Honourable Members are requested to note the report

THANK YOU

ANNEXURES

18

R Thousands

Main Budget 2014/15

Total Adjustments

Adjusted Budget


Outcome as %

Budget


(Over) / under-

spending

% (Over) / under-

spending

Main Budget 2013/14

Total Adjustme

nts

Adjusted Budget


Outcome as %

Budget


(Over) / under-

spending

% (Over) / under-

spending

ProgrammeADMINISTRATION 1 185 818 (11 629) 1 174 189 1 171 649 99.8% - 2 540 0.2% 1 123 028 (50 613) 1 072 415 1 051 961 98.1% - 20 454 1.9%PUBLIC ORDINARY SCHOOL EDUCATION 12 926 981 57 146 12 984 127 12 889 750 99.3% - 94 377 0.7% 12 148 778 71 492 12 220 270 12 145 020 99.4% - 75 250 0.6%INDEPENDENT SCHOOL SUBSIDIES 18 000 (1 260) 16 740 16 342 97.6% - 398 2.4% 16 000 - 16 000 15 338 95.9% - 662 4.1%PUBLIC SPECIAL SCHOOL EDUCATION 219 361 (1 364) 217 997 217 189 99.6% - 808 0.4% 211 847 714 212 561 200 947 94.5% - 11 614 5.5%FURTHER EDUCATION AND TRAINING 243 321 (1 498) 241 823 240 672 99.5% - 1 151 0.5% 244 819 (2 583) 242 236 241 163 99.6% - 1 073 0.4%ADULT BASIC EDUCATION AND TRAINING 146 042 (1 798) 144 244 143 472 99.5% - 772 0.5% 138 696 (105) 138 591 137 471 99.2% - 1 120 0.8%EARLY CHILDHOOD DEVELOPMENT 192 402 (6 435) 185 967 176 901 95.1% - 9 066 4.9% 178 477 17 797 196 274 191 682 97.7% - 4 592 2.3%INFRASTRUCTURE DEVELOPMENT 907 209 113 824 1 021 033 780 000 76.4% - 241 033 23.6% 595 755 166 108 761 863 713 732 93.7% - 48 131 6.3%TOTAL 16 102 831 160 534 16 263 365 15 909 887 97.8% - 353 478 2.2% 14 896 956 205 941 15 102 897 14 932 789 98.9% - 170 108 1.1%Economic classification Compensation of employees 12 733 191 (145 744) 12 587 447 12 488 913 99.2% - 98 534 0.8% 11 939 540 (98 834) 11 840 706 11 753 910 99.3% - 86 796 0.7%Goods and services 1 470 212 115 659 1 585 871 1 573 955 99.2% - 11 916 0.8% 1 473 845 157 625 1 631 470 1 616 997 99.1% - 14 473 0.9%Interest and rent on land - - - 68 - ( 68) - - - 132 - ( 132) Total transfers and subsidies 974 991 71 520 1 046 511 1 040 126 99.4% - 6 385 0.6% 873 680 (6 584) 867 096 865 818 99.9% - 1 278 0.1%Payments for capital assets 924 437 119 099 1 043 536 780 092 74.8% - 263 444 25.2% 609 891 153 734 763 625 695 932 91.1% - 67 693 8.9%Payments for financial assets - - - 26 733 - ( 26 733) - - - - - - Total 16 102 831 160 534 16 263 365 15 909 887 97.8% - 353 478 2.2% 14 896 956 205 941 15 102 897 14 932 789 98.9% - 170 108 1.1%

EDUCATION

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EDUCATION

DEPARTMENT OF EDUCATION

a) The department has a challenge regarding Compensation of Employees; funds are locked up in this Economic Classification only

to be shifted during the adjustment process. The department conceded that it experienced difficulty in the filling of posts; but that

the increased numbers of learners had an impact in this regard. Another challenge that had an impact on the slow filling of posts

was the unforeseen number of educators who resigned or opted for early resignation due to the uninformed rumours surrounding

the Government Pension Fund. It is envisaged that the enhancement of planning in the Human Resource unit will alleviate the

difficulty in filling of posts.

b) The department has a challenge in spending capital assets despite the backlogs on infrastructure. The department received

funding during the adjustment process and work has already commenced; however, the department underspent on earlier

projects. The department conceded that it had a challenge in this regard. Subsequently it embarked on a process to identify the

specific weaknesses where-after a Programme Management Unit was established to assist with matters relating to planning. This

Programme Management Unit will ensure that the implementing agent (Department of Public Works, Roads and Transport) has

proper plans prior to implementation of education infrastructure projects. The high turnover in the post of Director: Infrastructure

has also been allayed and an appointment was made in this regard in September 2014.

c) The relationship with the implementing agent has improved and there are regular monthly POMM meetings, which are chaired

by, where all possible challenges are addressed. If this structure cannot resolve specific challenges it is elevated to the Joint

Operational Committee where both the HODs for Education and Public Works, Roads and Transport are members.

d) The department has accruals amounting to R 67 million for the 2014/15 financial year that consists of R 36 million from

conditional grants and R 21 million from the equitable share. Since an amount of R 58.1 million of the accruals are committed; a

roll-over has been requested from Provincial Treasury. It is envisaged that the remaining amount of R 8.9 million will be funded

by internal austerity measures.

21

ConclusionThe Provincial Treasury would like to encourage the Department to improve planning/budgeting around COE ,procurement of goods and payment of capital assets. The reduction on accruals from R 289.476 million from 2013/14 to R 67.117 million for 2014/15 is a great achievement and the Department is commended for this as it implies that funds appropriated for 2015/16 will in the main be used to achieve the objectives of the 2015/16 APP.

22

R Thousands

Main Budget 2014/15

Total Adjustments

Adjusted Budget


Outcome as %

Budget


(Over) / under-

spending

% (Over) / under-

spending

Main Budget 2013/14

Total Adjustme

nts

Adjusted Budget


Outcome as %

Budget


(Over) / under-

spending

% (Over) / under-

spending

ProgrammeADMINISTRATION 237 154 (28 791) 208 363 196 542 94.3% - 11 821 5.7% 210 870 1 796 212 666 221 900 104.3% - ( 9 234) -4.3%DISTRICT HEALTH SERVICES 5 310 655 174 951 5 485 606 5 496 197 100.2% - ( 10 591) -0.2% 4 830 351 86 209 4 916 560 4 925 584 100.2% - ( 9 024) -0.2%EMERGENCY MEDICAL SERVICES 319 152 209 319 361 319 347 100.0% - 14 0.0% 285 827 (33 101) 252 726 249 584 98.8% - 3 142 1.2%PROVINCIAL HOSPITAL SERVICES 1 130 564 (83 234) 1 047 330 1 047 266 100.0% - 64 0.0% 1 003 924 (53 568) 950 356 947 563 99.7% - 2 793 0.3%CENTRAL HOSPITAL SERVICES 936 128 19 412 955 540 943 975 98.8% - 11 565 1.2% 827 337 (9 851) 817 486 812 087 99.3% - 5 399 0.7%HEALTH SCIENCES AND TRAINING 273 049 32 176 305 225 305 208 100.0% - 17 0.0% 252 034 20 408 272 442 271 672 99.7% - 770 0.3%HEALTH CARE SUPPORT SERVICES 120 146 (17 492) 102 654 101 707 99.1% - 947 0.9% 121 583 (11 450) 110 133 105 887 96.1% - 4 246 3.9%HEALTH FACILITIES MANAGEMENT 664 762 (56 294) 608 468 469 050 77.1% - 139 418 22.9% 552 579 37 026 589 605 531 120 90.1% - 58 485 9.9%TOTAL 8 991 610 40 937 9 032 547 8 879 292 98.3% - 153 255 1.7% 8 084 505 37 469 8 121 974 8 065 397 99.3% - 56 577 0.7%Economic Classification: Compensation of employees 5 663 449 (103 062) 5 560 387 5 537 663 99.6% - 22 724 0.4% 5 043 020 (45 875) 4 997 145 4 989 241 99.8% - 7 904 0.2%Goods and services 2 535 225 131 579 2 666 804 2 642 172 99.1% - 24 632 0.9% 2 274 128 (48 856) 2 225 272 2 243 510 100.8% - ( 18 238) -0.8%Interest and rent on land - - - 915 - ( 915) - - - 329 - ( 329) Total transfers and subsidies 231 162 30 635 261 797 264 468 101.0% - ( 2 671) -1.0% 200 071 39 748 239 819 278 279 116.0% - ( 38 460) -16.0%Payments for capital assets 561 774 (18 215) 543 559 434 074 79.9% - 109 485 20.1% 567 286 92 452 659 738 554 038 84.0% - 105 700 16.0%Payments for financial assets - - - - - - - - - - - - Total 8 991 610 40 937 9 032 547 8 879 292 98.3% - 153 255 1.7% 8 084 505 37 469 8 121 974 8 065 397 99.3% - 56 577 0.7%

HEALTH

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HEALTH

24

HEALTH

The 98.3 % spending of the department is below the 100 % benchmark for the 12 months and the under-expenditure of R153.255m (1.7 %) is a concern as 56.7 % of this is conditional grants (mainly infrastructure grants). Accruals of R357.448 m are reported on the AFS.

Compensation of Employees (CoE) – The trend shows that the item has been over budgeted over the past years, and at the end of the financial year the outcome would be the under spending on the item. The imbalance of the budget on the item has led to dire consequences where the unspent budget is surrendered to the Provincial Treasury without the prospect of rolling over of the funds.On the Pre-audited AFS, the department has reported the accruals of R24.296 m on this item, due to overtime, rank translation, danger allowance, leave discounting and rural allowance. This means the department will need to fund this amount within its 2015/16 allocation as there are no roll-overs on this item.

Goods and Services – The under budgeting on the key goods and services items (such as medicine) which has resulted on the overspending on these key items is a concern.

25

Payments for Capital Assets – The failure of the Department to implement the asset procurement plan and problems with some accounts received from the implementing agent Public Works due to incorrect calculations, causes delays in payment of infrastructure projects. Final accounts are also not closed on stipulated times. There is slow performance of contractors appointed at Ermelo and Standerton projects. There is also a delay in implementation due to overdesign for the following projects: Themba, Carolina, Sabie, Elsie Ballot, Mmammethlakhe, Ermelo and Bethal. All the above factors attributed to the slow spending on Capital. Adjudication processes also need to be finalized for appointment of contractors for tenders advertised for critical medical equipment.

Conditional Grants – Health Facility Revitalization Grant - The Department could not process outstanding accounts due to non receiving of final accounts for completed projects from the implementing agent. Some accounts have been returned due to incomplete information or lack of required documentation. The agreement of scope between the Department and Department of Public Works also took longer than expected to finalize.NHI - The grant is experiencing delays with specification for impact assessments which is difficult and relies on guidance from National Health.The department has finalised appointment of Head of Infrastructure and appointments in this unit are being prioritised.

HEALTH

26

Conditional Grants NTSG – Spending on the grant is below the benchmark although the purpose of the grant have changed and a revised business plan have therefor been approved. Newly appointed specialist were incorrectly linked and tender for equipment was advertised in November. Some accounts were processed using equitable share e.g. Laboratory services and Blood supplies. Also delays are experience in payment of accounts for private services due to long SCM processes.

EPWP Integrated – Department of Public Works delayed the scoping and appointment of contractors. Also contributing is the slow progress on sites handed over.

27

R Thousands

Main Budget 2014/15

Total Adjustments

Adjusted Budget


Outcome as %

Budget


(Over) / under-

spending

% (Over) / under-

spending

Main Budget 2013/14

Total Adjustme

nts

Adjusted Budget


Outcome as %

Budget


(Over) / under-

spending

% (Over) / under-

spending

ProgrammeADMINISTRATION 252 099 (1 998) 250 101 250 097 100.0% - 4 0.0% 248 530 827 249 357 238 861 95.8% - 10 496 4.2%SOCIAL WELFARE SERVICES 456 305 (47 567) 408 738 408 738 100.0% - - 0.0% 781 205 12 536 793 741 767 942 96.7% - 25 799 3.3%CHILDREN AND FAMILIES 319 500 33 936 353 436 353 435 100.0% - 1 0.0% 124 559 1 976 126 535 126 159 99.7% - 376 0.3%RESTORATIVE SERVICES 82 152 3 824 85 976 85 976 100.0% - - 0.0% - - - - - - DEVELOPMENT AND RESEARCH 122 009 49 122 058 122 057 100.0% - 1 0.0% - - - - - - TOTAL 1 232 065 (11 756) 1 220 309 1 220 303 100.0% - 6 0.0% 1 154 294 15 339 1 169 633 1 132 962 96.9% - 36 671 3.1%Economic Classification: Compensation of employees 515 837 (15 449) 500 388 500 387 100.0% - 1 0.0% 457 563 937 458 500 447 847 97.7% - 10 653 2.3%Goods and services 163 455 19 541 182 996 183 229 100.1% - ( 233) -0.1% 190 099 48 337 238 436 233 942 98.1% - 4 494 1.9%Interest and rent on land - - - - - - - - - - - - Total transfers and subsidies 461 135 (7 598) 453 537 453 208 99.9% - 329 0.1% 419 260 (15 703) 403 557 394 792 97.8% - 8 765 2.2%Payments for capital assets 91 638 (8 250) 83 388 83 479 100.1% - ( 91) -0.1% 85 517 (16 707) 68 810 56 051 81.5% - 12 759 18.5%Payments for financial assets - - - - - - 1 855 (1 525) 330 330 100.0% - - 0.0%Total 1 232 065 (11 756) 1 220 309 1 220 303 100.0% - 6 0.0% 1 154 294 15 339 1 169 633 1 132 962 96.9% - 36 671 3.1%

SOCIAL DEVELOPMENT

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SOCIAL DEVELOPMENT

DEPARTMENT OF SOCIAL DEVELOPMENT

a) The department spent 100% of its budget allocation for 2014/15; and closed the financial year with an

overdraft amount of R 3.7 million.

b) The bank overdraft was caused by disbursements made on the last day of financial end and the cash in

the bank was not enough. The department acknowledged the anomaly and that it should have managed

its finances better. In order to address this weakness and to ensure that this does not recur in future the

department, in addition to the cash management systems already in place, implemented the following

systems:

c) Monthly reconciliation which incorporates the debtors created in respect disbursements of the current

financial year. Improve daily and monthly reconciliations on Bank (PMG) and BAS account balances to

avoid bank overdrafts.

d) The department will also continue to perform daily bank reconciliation which provides guidance on cash

requisites daily as well as cash balances. In addition, the departmental bookkeeping unit will interact with

districts finance heads and the provincial responsible official for payment with regard to cash needs prior

authorising payments in the system. A total amount of R 17.816 million is recorded as accruals for the

period ended 31 March 2015. Of these accruals, an amount of R 10.799 million is for infrastructure

invoices in respect of infrastructure projects under implementation. Goods and Services accruals amount

to R 6.545 million and the remaining amount is for Transfers and Subsidies.

30

R Thousands

Main Budget 2014/15

Total Adjustments

Adjusted Budget


Outcome as %

Budget


(Over) / under-

spending

% (Over) / under-

spending

Main Budget 2013/14

Total Adjustme

nts

Adjusted Budget


Outcome as %

Budget


(Over) / under-

spending

% (Over) / under-

spending

ProgrammeADMINISTRATION 83 618 15 962 99 580 98 398 98.8% - 1 182 1.2% 74 690 92 874 167 564 167 418 99.9% - 146 0.1%INSTITUTIONAL DEVELOPMENT 74 044 644 74 688 74 257 99.4% - 431 0.6% 73 975 (5 019) 68 956 68 784 99.8% - 172 0.2%POLICY AND GOVERNANCE 47 710 (5 158) 42 552 38 240 89.9% - 4 312 10.1% 51 827 (9 920) 41 907 41 441 98.9% - 466 1.1%TOTAL 205 372 11 448 216 820 210 895 97.3% - 5 925 2.7% 200 492 77 935 278 427 277 643 99.7% - 784 0.3%Economic Classification: Compensation of employees 125 359 (6 732) 118 627 118 236 99.7% - 391 0.3% 116 319 (5 355) 110 964 110 959 100.0% - 5 0.0%Goods and services 71 830 16 878 88 708 84 032 94.7% - 4 676 5.3% 74 473 79 289 153 762 153 279 99.7% - 483 0.3%Interest and rent on land - - - - - - - - - - - - Total transfers and subsidies 4 156 3 719 7 875 7 825 99.4% - 50 0.6% 3 750 302 4 052 4 051 100.0% - 1 0.0%Payments for capital assets 4 027 (2 417) 1 610 802 49.8% - 808 50.2% 5 950 3 699 9 649 9 354 96.9% - 295 3.1%Payments for financial assets - - - - - - - - - - - - Total 205 372 11 448 216 820 210 895 97.3% - 5 925 2.7% 200 492 77 935 278 427 277 643 99.7% - 784 0.3%

OFFICE OF THE PREMIER

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a) The Office of the Premier had accruals at the end of March 2015; however, these funds are

committed. It relates to work that has already started and that will be completed and paid

within the first quarter of the 2015/16 financial year.

b) The Office of the Premier has accruals that were not in the excess of 30 days.

c) The average time of payment of invoices in the Office of the Premier is approximately four

days; and this has also been confirmed in the Auditor-General opinion in the 2013/14 financial

year. The Office of the Premier considers the allocated budget sufficient and will spend

accordingly as per the approved business plans.

d) The Office of the Premier indicated that it does not envisage having a March Spike by the end

of the 2015/16 financial year; and that it has all its plans aligned, namely as follows:

The Operational Plan 2015/16 is aligned to the Annual Performance Plan 2015/16.

• The Cash flow projection is aligned to the Operational Plan 2015/16.

• Provincial Treasury is currently monitoring procurement Plan for the acquisition of Goods and

Services that was developed by the Office and submitted to Provincial Treasury.

• Provincial Treasury already monitoring implementation in line with procurement plans and Bid

Bulletins. Office is being assisted not to incur March Spike.

33

R Thousands

Main Budget 2014/15

Total Adjustments

Adjusted Budget


Outcome as %

Budget


(Over) / under-

spending

% (Over) / under-

spending

Main Budget 2013/14

Total Adjustme

nts

Adjusted Budget


Outcome as %

Budget


(Over) / under-

spending

% (Over) / under-

spending

ProgrammeADMINISTRATION 116 245 19 090 135 335 133 133 98.4% - 2 202 1.6% 104 366 6 790 111 156 111 120 100.0% - 36 0.0%PARLIAMENTARY BUSINESS 157 243 (1 457) 155 786 155 537 99.8% - 249 0.2% 139 068 1 181 140 249 139 757 99.6% - 492 0.4%TOTAL 273 488 17 633 291 121 288 670 99.2% - 2 451 0.8% 243 434 7 971 251 405 250 877 99.8% - 528 0.2%Economic Classification: Compensation of employees 132 029 (16 121) 115 908 115 908 100.0% - - 0.0% 112 440 (10 350) 102 090 101 616 99.5% - 474 0.5%Goods and services 98 706 22 307 121 013 130 287 107.7% - ( 9 274) -7.7% 86 923 22 170 109 093 110 928 101.7% - ( 1 835) -1.7%Interest and rent on land - - - - - - - - - - - - Total transfers and subsidies 37 894 174 38 068 37 819 99.3% - 249 0.7% 36 904 250 37 154 37 154 100.0% - - 0.0%Payments for capital assets 4 859 11 273 16 132 4 656 28.9% - 11 476 71.1% 7 167 (4 099) 3 068 1 179 38.4% - 1 889 61.6%Payments for financial assets - - - - - - - - - - - - Total 273 488 17 633 291 121 288 670 99.2% - 2 451 0.8% 243 434 7 971 251 405 250 877 99.8% - 528 0.2%

MPUMALANGA PROVINCIAL LEGISLATURE

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PROVINCIAL LEGISLATURE

PROVINCIAL LEGISLATURE

a) The Mpumalanga Provincial Legislature must improve on its planning and financial projections to ensure

that each Economic Classification item has been properly budgeted for.

b) The Mpumalanga Provincial Legislature must ensure spending strictly in terms of its approved Annual

Performance Plan for 2015/16 to minimise accumulating committed and cash backed accruals.

c) The Mpumalanga Provincial Legislature must plan properly for its various Economic Classifications and

refrain from shifting funds to alleviate pressures within its allocated budget.

d) The Mpumalanga Provincial Legislature must obtain the report on the proposal made by Hall and Sons

that indicate its willingness to donate strategically situated land for the Parliamentary Village; especially

since the feasibility studies and all necessary processes on this land has already been undertaken. This

report must be obtained before any funds from the institution are utilised for the proposed feasibility study

on the Parliamentary Village.

e) The Mpumalanga Provincial Legislature must ensure strict implementation of its cost curtailment

measures.

f) The Mpumalanga Provincial Legislature must report quarterly to the relevant Select Committee indicating

whether it spent within their quarterly performance plan targets for 2015/16.

36

R Thousands

Main Budget 2014/15

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Adjusted Budget


Outcome as %

Budget


(Over) / under-

spending

% (Over) / under-

spending

Main Budget 2013/14

Total Adjustme

nts

Adjusted Budget


Outcome as %

Budget


(Over) / under-

spending

% (Over) / under-

spending

ProgrammeADMINISTRATION 79 919 (2 875) 77 044 76 153 98.8% - 891 1.2% 76 490 (1 713) 74 777 73 704 98.6% - 1 073 1.4%SUSTAINABLE RESOURCE MANAGEMENT 46 946 (2 116) 44 830 44 378 99.0% - 452 1.0% 45 116 (222) 44 894 44 489 99.1% - 405 0.9%ASSET AND LIABILITIES MANAGEMENT 113 790 1 258 115 048 112 136 97.5% - 2 912 2.5% 110 404 (4 052) 106 352 106 036 99.7% - 316 0.3%FINANCIAL GOVERNANCE 27 514 7 588 35 102 32 086 91.4% - 3 016 8.6% 34 858 (5 876) 28 982 27 523 95.0% - 1 459 5.0%TOTAL 268 169 3 855 272 024 264 753 97.3% - 7 271 2.7% 266 868 (11 863) 255 005 251 752 98.7% - 3 253 1.3%Economic Classification: Compensation of employees 154 436 (12 545) 141 891 140 690 99.2% - 1 201 0.8% 144 383 (8 416) 135 967 135 842 99.9% - 125 0.1%Goods and services 105 797 13 198 118 995 114 343 96.1% - 4 652 3.9% 118 691 (8 584) 110 107 107 174 97.3% - 2 933 2.7%Interest and rent on land - - - - - - - - - - - - Total transfers and subsidies 3 509 3 208 6 717 6 646 98.9% - 71 1.1% 184 3 686 3 870 3 860 99.7% - 10 0.3%Payments for capital assets 4 427 (10) 4 417 3 070 69.5% - 1 347 30.5% 3 610 1 451 5 061 4 876 96.3% - 185 3.7%Payments for financial assets - 4 4 4 100.0% - - 0.0% - - - - - - Total 268 169 3 855 272 024 264 753 97.3% - 7 271 2.7% 266 868 (11 863) 255 005 251 752 98.7% - 3 253 1.3%

FINANCE

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FINANCE

PROVINCIAL TREASURY

a) Provincial Treasury has a trend of surrendering funds each year during the

adjustment process and still underspend at the end of the financial year.

b) Provincial Treasury registered accruals amounting to R 3.5 million at the end of

the 2014/15 financial year; these are cashbacked.

c) Provincial Treasury considers the allocated budget sufficient and will spend

accordingly as per its approved business plans.

d) Provincial Treasury indicated that it has effective cost curtailment measures in

place; and it is not envisaged to have a March Spike by the end of the 2015/16

financial year.

e) Provincial Treasury provided its cost curtailment measures as requested.

39

R Thousands

Main Budget 2014/15

Total Adjustments

Adjusted Budget


Outcome as %

Budget


(Over) / under-

spending

% (Over) / under-

spending

Main Budget 2013/14

Total Adjustme

nts

Adjusted Budget


Outcome as %

Budget


(Over) / under-

spending

% (Over) / under-

spending

ProgrammeADMINISTRATION 102 876 (198) 102 678 102 545 99.9% - 133 0.1% 96 183 8 459 104 642 101 218 96.7% - 3 424 3.3%LOCAL GOVERNANCE 141 010 11 837 152 847 152 839 100.0% - 8 0.0% 135 212 9 052 144 264 142 502 98.8% - 1 762 1.2%DEVELOPMENT AND PLANNING 60 262 42 684 102 946 99 448 96.6% - 3 498 3.4% 108 811 (37 757) 71 054 52 109 73.3% - 18 945 26.7%TRADITIONAL INSTITUTIONAL MANAGEMENT 101 283 (9 821) 91 462 91 224 99.7% - 238 0.3% 73 540 17 503 91 043 89 678 98.5% - 1 365 1.5%THE HOUSE OF TRADITIONAL LEADERS 13 361 1 793 15 154 15 025 99.1% - 129 0.9% 12 162 2 544 14 706 13 852 94.2% - 854 5.8%TOTAL 418 792 46 295 465 087 461 081 99.1% - 4 006 0.9% 425 908 (199) 425 709 399 359 93.8% - 26 350 6.2%Economic Classification: Compensation of employees 325 011 (1 352) 323 659 323 635 100.0% - 24 0.0% 274 376 27 122 301 498 297 679 98.7% - 3 819 1.3%Goods and services 70 085 11 488 81 573 82 288 100.9% - ( 715) -0.9% 74 502 (2 810) 71 692 64 948 90.6% - 6 744 9.4%Interest and rent on land - - - - - - - - - - - - Total transfers and subsidies 22 078 977 23 055 22 815 99.0% - 240 1.0% 11 197 2 600 13 797 13 469 97.6% - 328 2.4%Payments for capital assets 1 618 35 182 36 800 32 343 87.9% - 4 457 12.1% 65 833 (27 111) 38 722 23 088 59.6% - 15 634 40.4%Payments for financial assets - - - - - - - - - 175 - ( 175) Total 418 792 46 295 465 087 461 081 99.1% - 4 006 0.9% 425 908 (199) 425 709 399 359 93.8% - 26 350 6.2%

CO-OPERATIVE GOVERNANCE AND TRADITIONAL AFFAIRS

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CO-OPERATIVE GOVERNANCE AND TRADITIONAL AFFAIRS

DEPARTMENT OF COOPERATIVE GOVERNANCE AND TRADITIONAL AFFAIRS

a) The department seems to bring new priorities as the year progresses; and that this

has been a trend in the department and needs to be corrected.

b) The department deems its allocated budget for the 2015/16 financial year as

sufficient.

c) The department applied for roll-overs to fund the outstanding retention fees for

water reservoir projects (in eight project sites) and the completion of Traditional

Council offices that were in progress at the 2014/15 financial year end;

furthermore, that the budget for the projects was committed.

d) It was noted that there is adequate budget for CDWs in the 2015/16 financial year.

e) The department has cost curtailment measures and will continue to implement it

throughout the 2015/16 financial year; however, the department was requested to

rework its cost curtailment measures and submit it to the Committee.

f) The department has proper business plans in place to prevent a March Spike.

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Budget


(Over) / under-

spending

% (Over) / under-

spending

Main Budget 2013/14

Total Adjustme

nts

Adjusted Budget


Outcome as %

Budget


(Over) / under-

spending

% (Over) / under-

spending

Programme ADMINISTRATION 135 299 (16 943) 118 356 116 508 98.4% - 1 848 1.6% 129 806 (7 213) 122 593 118 406 96.6% - 4 187 3.4%SUSTAINABLE RESOURCE MANAGEMENT 62 473 9 858 72 331 71 635 99.0% - 696 1.0% 57 740 3 850 61 590 59 267 96.2% - 2 323 3.8%FARMER SUPPORT AND DEVELOPMENT 449 956 78 814 528 770 513 014 97.0% - 15 756 3.0% 491 536 (28 272) 463 264 417 486 90.1% - 45 778 9.9%VETERINARY SERVICES 114 541 (9 868) 104 673 103 850 99.2% - 823 0.8% 107 100 (2 500) 104 600 98 089 93.8% - 6 511 6.2%RESEARCH AND TECHNOLOGY DEVELOPMENT SERVICES 47 900 (4 648) 43 252 41 958 97.0% - 1 294 3.0% 37 062 500 37 562 36 601 97.4% - 961 2.6%AGRICULTURAL ECONOMICS SERVICES 42 762 (24 710) 18 052 15 458 85.6% - 2 594 14.4% 54 302 (669) 53 633 47 233 88.1% - 6 400 11.9%STRUCTURED AGRICULTURAL EDUCATION AND TRAINING 71 365 (16 608) 54 757 51 536 94.1% - 3 221 5.9% 63 555 9 528 73 083 71 291 97.5% - 1 792 2.5%RURAL DEVELOPMENT COORDINATION 147 108 (125 591) 21 517 21 047 97.8% - 470 2.2% 86 502 (6 822) 79 680 63 758 80.0% - 15 922 20.0%ENVIRONMENTAL AFFAIRS - 73 710 73 710 69 438 94.2% - 4 272 5.8% 22 442 (5 050) 17 392 16 164 92.9% - 1 228 7.1%TOTAL 1 071 404 (35 986) 1 035 418 1 004 444 97.0% - 30 974 3.0% 1 050 045 (36 648) 1 013 397 928 295 91.6% - 85 102 8.4%Economic Classification: Compensation of employees 487 148 25 471 512 619 498 615 97.3% - 14 004 2.7% 452 892 8 556 461 448 453 359 98.2% - 8 089 1.8%Goods and services 233 277 (35 336) 197 941 195 639 98.8% - 2 302 1.2% 236 996 (16 297) 220 699 192 907 87.4% - 27 792 12.6%Interest and rent on land - - - - - - - - - - - - Total transfers and subsidies 299 139 (56 625) 242 514 230 798 95.2% - 11 716 4.8% 324 392 (54 146) 270 246 224 523 83.1% - 45 723 16.9%Payments for capital assets 51 840 30 504 82 344 78 705 95.6% - 3 639 4.4% 32 935 28 069 61 004 57 386 94.1% - 3 618 5.9%Payments for financial assets - - - 687 - ( 687) 2 830 (2 830) - 120 - ( 120) Total 1 071 404 (35 986) 1 035 418 1 004 444 97.0% - 30 974 3.0% 1 050 045 (36 648) 1 013 397 928 295 91.6% - 85 102 8.4%

AGRICULTURE, RURAL DEVELOPMENT, LAND AND ENVIRONMENTAL AFFAIRS

43






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AGRICULTURE, RURAL DEVELOPMENT AND LAND ADMINISTRATION

DEPARTMENT OF AGRICULTURE, RURAL DEVELOPMENT LAND AND ENVIRONMENTAL AFFAIRS

a) Funds were shifted in the excess of R 100 million during the November 2014 adjustment process and an

additional amount of R 20 million during the second adjustment process. However, despite the funds

having been shifted the department still underspent by 3% or R 30.974 million.

b) The underspending was due to the fact that the department was under intervention. In the process most

of the projects were put on hold whilst the department was assisted to ensure that it has proper

procedures for the implementation of projects, improvements in supply chain, improvements in costing

and proper accounting for compensation of employees which was always overspent in previous years,

amongst others.

c) The department was afforded the opportunity to draft an acceleration plan, and to try to mitigate some of

the challenges that existed in the department. Once this plan was in line with the adopted Annual

Performance Plan for 2014/15 the department could continue to implement projects. Most projects started

in October 2014; hence, the department could not spend the full budget. Some of the projects that could

not be completed in the 2014/15 financial year were transferred to the 2015/16 financial year.

d) The department also surrendered funds that could not be utilised to Provincial Treasury and these funds

remain in the Provincial Revenue Fund. Regrettably R26 million is withheld by DAFF due to slow spending.

e) The department underspent with 2.7% or R 14.004 million on Compensation of Employees at the end of

March 2015.It is envisaged that the under-spending on Compensation of Employees will not occur again

since most of the funded and unfunded vacant posts have been abolished in terms of the moratorium on

the filling of posts. The department undertook a process of rationalisation to ensure that all critical posts are

filled internally within the department. The only exception made by the Executive Council is in relation to

posts that are statutory in nature, namely those in veterinary services.

f) The department has proper business plans in place to prevent a March Spike and underspending.

g) The Provincial Treasury continues to pay special attention to the department that has just emerged from a

PFMA section 18(2) (g) intervention.

h) The monitoring is also extended to supply chain monitoring of the 2015/16 procurement plan.

i) Most of tenders are already in the May, June 2015 bid bulletin.

DEPARTMENT OF AGRICULTURE, RURAL DEVELOPMENT LAND AND ENVIRONMENTAL AFFAIRS

46

R Thousands

Main Budget 2014/15

Total Adjustments

Adjusted Budget


Outcome as %

Budget


(Over) / under-

spending

% (Over) / under-

spending

Main Budget 2013/14

Total Adjustme

nts

Adjusted Budget


Outcome as %

Budget


(Over) / under-

spending

% (Over) / under-

spending

ProgrammeADMINISTRATION 89 774 (1 927) 87 847 86 419 98.4% - 1 428 1.6% 84 236 8 105 92 341 88 434 95.8% - 3 907 4.2%INTEGRATED ECONOMIC DEVELOPMENT 242 956 (11 842) 231 114 231 114 100.0% - - 0.0% 196 866 (3 080) 193 786 196 990 101.7% - ( 3 204) -1.7%TRADE AND SECTOR DEVELOPMENT 17 711 (2 725) 14 986 14 912 99.5% - 74 0.5% 17 720 18 497 36 217 35 461 97.9% - 756 2.1%BUSINESS REGULATION AND GOVERNANCE 82 495 634 83 129 82 400 99.1% - 729 0.9% 75 817 3 958 79 775 80 979 101.5% - ( 1 204) -1.5%ECONOMIC PLANNING 14 989 (600) 14 389 13 362 92.9% - 1 027 7.1% 9 833 (1 354) 8 479 8 344 98.4% - 135 1.6%ENVIRONMENTAL SERVICES 81 208 (81 208) - - - - 110 375 (14 924) 95 451 94 969 99.5% - 482 0.5%TOURISM 332 639 189 332 828 332 828 100.0% - - 0.0% 326 720 (660) 326 060 325 863 99.9% - 197 0.1%TOTAL 861 772 (97 479) 764 293 761 035 99.6% - 3 258 0.4% 821 567 10 542 832 109 831 040 99.9% - 1 069 0.1%Economic Classification: Compensation of employees 178 989 (68 432) 110 557 109 953 99.5% - 604 0.5% 169 201 (4 854) 164 347 163 896 99.7% - 451 0.3%Goods and services 106 861 (14 504) 92 357 89 214 96.6% - 3 143 3.4% 82 526 15 896 98 422 92 323 93.8% - 6 099 6.2%Interest and rent on land - - - - - - - - - - - - Total transfers and subsidies 556 046 100 556 146 556 540 100.1% - ( 394) -0.1% 550 740 20 000 570 740 572 525 100.3% - ( 1 785) -0.3%Payments for capital assets 14 876 (9 643) 5 233 5 328 101.8% - ( 95) -1.8% 14 100 (10 500) 3 600 2 277 63.3% - 1 323 36.8%Payments for financial assets 5 000 (5 000) - - - - 5 000 (10 000) (5 000) 19 -0.4% - ( 5 019) 100.4%Total 861 772 (97 479) 764 293 761 035 99.6% - 3 258 0.4% 821 567 10 542 832 109 831 040 99.9% - 1 069 0.1%

ECONOMIC DEVELOPMENT AND TOURISM

The department must strengthen its capacity to oversee the work of all public entities;

and ensure that public entities spend strictly in terms of their approved Annual

Performance Plan for 2014/15.

47





Cash Transferred 64 720 98 035 55 999 101 424 46 155 58 532 94 690 60 290 40 062 97 433 51 753 (4 800)

(20 000)

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140 000

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ECONOMIC DEVELOPMENT, ENVIRONMENT AND TOURISM

48

R Thousands

Main Budget 2014/15

Total Adjustments

Adjusted Budget


Outcome as %

Budget


(Over) / under-

spending

% (Over) / under-

spending

Main Budget 2013/14

Total Adjustme

nts

Adjusted Budget


Outcome as %

Budget


(Over) / under-

spending

% (Over) / under-

spending

ProgrammeADMINISTRATION 238 324 (10 918) 227 406 227 405 100.0% - 1 0.0% 225 687 (5 146) 220 541 220 541 100.0% - - 0.0%PUBLIC WORKS INFRASTRUCTURE 633 057 (42 437) 590 620 590 618 100.0% - 2 0.0% 567 870 24 651 592 521 592 521 100.0% - - 0.0%TRANSPORT INFRASTRUCTURE 2 196 807 173 057 2 369 864 2 369 864 100.0% - - 0.0% 2 107 763 (58 632) 2 049 131 2 048 655 100.0% - 476 0.0%TRANSPORT OPERATIONS 1 071 622 (77 288) 994 334 993 908 100.0% - 426 0.0% 1 010 240 7 607 1 017 847 1 017 847 100.0% - - 0.0%COMMUNITY BASED PROGRAMMES 53 827 5 540 59 367 59 366 100.0% - 1 0.0% 59 512 8 658 68 170 67 600 99.2% - 570 0.8%TOTAL 4 193 637 47 954 4 241 591 4 241 161 100.0% - 430 0.0% 3 971 072 (22 862) 3 948 210 3 947 164 100.0% - 1 046 0.0%Economic Classification: Compensation of employees 893 403 (54 182) 839 221 839 217 100.0% - 4 0.0% 863 158 (58 323) 804 835 804 835 100.0% - - 0.0%Goods and services 1 518 782 (108 596) 1 410 186 1 408 376 99.9% - 1 810 0.1% 1 317 634 (32 880) 1 284 754 1 283 708 99.9% - 1 046 0.1%Interest and rent on land - - - - - - - - - - - - Total transfers and subsidies 642 247 1 154 643 401 642 975 99.9% - 426 0.1% 605 680 16 009 621 689 621 689 100.0% - - 0.0%Payments for capital assets 1 139 205 208 487 1 347 692 1 349 502 100.1% - ( 1 810) -0.1% 1 184 600 50 542 1 235 142 1 235 142 100.0% - - 0.0%Payments for financial assets - 1 091 1 091 1 091 100.0% - - 0.0% - 1 790 1 790 1 790 100.0% - - 0.0%Total 4 193 637 47 954 4 241 591 4 241 161 100.0% - 430 0.0% 3 971 072 (22 862) 3 948 210 3 947 164 100.0% - 1 046 0.0%

PUBLIC WORKS, ROADS AND TRANSPORT

49






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PUBLIC WORKS, ROADS AND TRANSPORT

50

R Thousands

Main Budget 2014/15

Total Adjustments

Adjusted Budget


Outcome as %

Budget


(Over) / under-

spending

% (Over) / under-

spending

Main Budget 2013/14

Total Adjustme

nts

Adjusted Budget


Outcome as %

Budget


(Over) / under-

spending

% (Over) / under-

spending

ProgrammeADMINISTRATION 115 543 (2 210) 113 333 112 561 99.3% - 772 0.7% 108 329 15 568 123 897 123 900 100.0% - ( 3) -0.0%CIVIL OVERSIGHT 12 349 (1 830) 10 519 10 503 99.8% - 16 0.2% 10 705 (735) 9 970 9 924 99.5% - 46 0.5%CRIME PREVENTION AND COMMUNITY POLICE RELATIONS 44 341 (12 091) 32 250 32 241 100.0% - 9 0.0% 41 360 (8 085) 33 275 33 022 99.2% - 253 0.8%TRANSPORT REGULATION 435 761 12 876 448 637 395 101 88.1% - 53 536 11.9% 323 633 2 609 326 242 325 631 99.8% - 611 0.2%SECURITY MANAGEMENT 419 965 (5 699) 414 266 414 256 100.0% - 10 0.0% 357 721 253 443 611 164 606 706 99.3% - 4 458 0.7%TOTAL 1 027 959 (8 954) 1 019 005 964 662 94.7% - 54 343 5.3% 841 748 262 800 1 104 548 1 099 183 99.5% - 5 365 0.5%Economic Classification: Compensation of employees 376 940 (10 085) 366 855 366 680 100.0% - 175 0.0% 349 007 (12 185) 336 822 336 396 99.9% - 426 0.1%Goods and services 531 354 13 645 544 999 532 443 97.7% - 12 556 2.3% 460 851 274 126 734 977 730 701 99.4% - 4 276 0.6%Interest and rent on land - - - 33 - ( 33) - - - - - - Total transfers and subsidies 3 000 (14) 2 986 2 986 100.0% - - 0.0% 1 500 859 2 359 2 327 98.6% - 32 1.4%Payments for capital assets 116 665 (12 500) 104 165 62 520 60.0% - 41 645 40.0% 30 390 - 30 390 29 759 97.9% - 631 2.1%Payments for financial assets - - - - - - - - - - - - Total 1 027 959 (8 954) 1 019 005 964 662 94.7% - 54 343 5.3% 841 748 262 800 1 104 548 1 099 183 99.5% - 5 365 0.5%

COMMUNITY SAFETY, SECURITY AND LIAISON

DEPARTMENT OF COMMUNITY SAFETY, SECURITY AND LIAISON

a) The challenges are around slow spending on infrastructure delivery in particular

the Traffic College

b) R40 million was rescheduled during adjustment however the department still

underspent by R41 million

c) The capacity of the Implementing agent to assist with credible projections

d) The department had accruals that were committed but not cash backed at the end

of the 2014/15 financial year. Monitoring will be strengthened as the department

starts the year with accruals amounting to R172 million against R54 million that

remained unspent at 31 March 2015

e) The department has cost curtailment measures in place; however will not offset the

envisaged deficit.

f) The department will be monitored by Provincial Treasury as this is also a

department that was under the PFMA section 18 (2)(g) intervention

52






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COMMUNITY SAFETY, SECURITY AND LIASON

Community Safety, Security and Liaisona) Overall the department’s overall underspending is higher than the accepted

threshold of 2 per cent. b) This is mainly in goods and services and capital assets. The department reported

that goods and services was due to delayed finalization of invoices of security services and capital assets was due to slow delivery of the traffic college.

c) R40 million was shifted from this department during adjustment when it was realized that spending was very slow.

d) Only R12.8 million has been requested as rollover for capital (R11.6 million) and goods and services.

54

R Thousands

Main Budget 2014/15

Total Adjustments

Adjusted Budget


Outcome as %

Budget


(Over) / under-

spending

% (Over) / under-

spending

Main Budget 2013/14

Total Adjustme

nts

Adjusted Budget


Outcome as %

Budget


(Over) / under-

spending

% (Over) / under-

spending

ProgrammeADMINISTRATION 82 284 (1 076) 81 208 80 184 98.7% - 1 024 1.3% 82 812 (3 309) 79 503 78 606 98.9% - 897 1.1%CULTURAL AFFAIRS 98 728 23 450 122 178 120 617 98.7% - 1 561 1.3% 79 684 7 923 87 607 87 441 99.8% - 166 0.2%LIBRARY AND ARCHIVES SERVICES 161 964 5 784 167 748 143 810 85.7% - 23 938 14.3% 108 279 15 267 123 546 120 141 97.2% - 3 405 2.8%SPORT AND RECREATION 99 232 (26 790) 72 442 66 492 91.8% - 5 950 8.2% 81 033 7 818 88 851 87 434 98.4% - 1 417 1.6%TOTAL 442 208 1 368 443 576 411 103 92.7% - 32 473 7.3% 351 808 27 699 379 507 373 622 98.4% - 5 885 1.6%Economic Classification: Compensation of employees 150 176 (3 295) 146 881 145 187 98.8% - 1 694 1.2% 142 540 (16 196) 126 344 125 533 99.4% - 811 0.6%Goods and services 150 935 10 334 161 269 147 167 91.3% - 14 102 8.7% 131 705 13 872 145 577 153 366 105.4% - ( 7 789) -5.4%Interest and rent on land - - - 1 700 - ( 1 700) - - - - - - Total transfers and subsidies 10 610 (1 239) 9 371 8 720 93.1% - 651 6.9% 11 600 (200) 11 400 10 675 93.6% - 725 6.4%Payments for capital assets 130 487 (4 432) 126 055 108 323 85.9% - 17 732 14.1% 65 963 30 223 96 186 84 048 87.4% - 12 138 12.6%Payments for financial assets - - - 6 - ( 6) - - - - - - Total 442 208 1 368 443 576 411 103 92.7% - 32 473 7.3% 351 808 27 699 379 507 373 622 98.4% - 5 885 1.6%

CULTURE, SPORT AND RECREATION

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CULTURE, SPORTS & RECREATION

56

CULTURE, SPORT AND RECREATION

Compensation of Employees (COE)The spending is lower than 2013/14 financial year which was at 99.4 %. The department has vacant senior management positions which have affected the spending.Goods and Servicesa) At 91.3 goods and services is the lowest spending classification as compared to 2013/14 financial year.

The biggest contributor to this under-spending is programme 3 Library and archives services which accounts for 41 % of the total departmental allocation for goods and services. At year end, the programme has spent only 84.5 % of its allocation compared to the over-expenditure incurred in the 2013/14 financial year.

b) Late procurement and delivery of library books and furniture is the main contributor to this under-spending. A rollover application of R 12.404million has been requested for the community library services grant. R10.5 million recommended for roll over purposes.

Transfers and subsidies c) At 93.1 %, the spending is below threshold for the year but on par with the spending for the 2013/14

financial year.d) The non-compliance by NPOs continues to affect the spending under this classification. e) The Provincial Treasury has set aside a budget to capacitate the NGOs and NPIs in the Culture, Sport and

Recreation sector with skills to compile financial statements, and to also support with auditing of their books of accounts in 2015/16 financial year. 27 NGOs in this sector will be capacitated. This commitment is in the 2015/16 APP and Policy and Budget Statement for the Provincial Treasury.

57

CULTURE, SPORT AND RECREATIONPayments for Capital Assets

a) The under-spending on this classification is mainly on machinery and equipment due to the late procurement and delivery of furniture for the archive building. Funding for archives machinery and equipment were allocated in the main appropriation. However only R1.959 million of the allocated R14.159 million was spent at year end.

b) The department has applied for a rollover of R12.278 million of the unspent funds under this classification.

c) Matter has been escalated to Executive Authority of the Department

Conditional Grantsd) The department has spent 92% of its total conditional grant allocation. The lowest

spending grant is the Community Library Services grant at 89%. A total of R13.513 million in rollover application has been made by the department.

e) Escalation – The performance of the department has not been satisfactory hence an escalation of the matters to the Executive Authority of the Department has been made. The spending of funds very late through the roll over process is unacceptable as it has become a trend.

58

R Thousands

Main Budget 2014/15

Total Adjustments

Adjusted Budget


Outcome as %

Budget


(Over) / under-

spending

% (Over) / under-

spending

Main Budget 2013/14

Total Adjustme

nts

Adjusted Budget


Outcome as %

Budget


(Over) / under-

spending

% (Over) / under-

spending

ProgrammeADMINISTRATION 123 201 262 123 463 123 417 100.0% - 46 0.0% 99 080 12 679 111 759 110 515 98.9% - 1 244 1.1%HOUSING NEEDS, RESEARCH AND PLANNING 53 382 274 798 328 180 319 432 97.3% - 8 748 2.7% 60 833 (8 983) 51 850 40 527 78.2% - 11 323 21.8%HOUSING DEVELOPMENT 1 200 273 217 512 1 417 785 1 310 603 92.4% - 107 182 7.6% 1 186 494 (11 670) 1 174 824 1 063 692 90.5% - 111 132 9.5%HOUSING ASSET MANAGEMENT 3 651 - 3 651 3 651 100.0% - - 0.0% 4 261 - 4 261 4 261 100.0% - - 0.0%TOTAL 1 380 507 492 572 1 873 079 1 757 103 93.8% - 115 976 6.2% 1 350 668 (7 974) 1 342 694 1 218 995 90.8% - 123 699 9.2%Economic Classification: Compensation of employees 160 798 (9 555) 151 243 151 197 100.0% - 46 0.0% 149 719 (12 630) 137 089 137 085 100.0% - 4 0.0%Goods and services 51 191 (101) 51 090 51 089 100.0% - 1 0.0% 49 974 (2 222) 47 752 47 745 100.0% - 7 0.0%Interest and rent on land - - - - - - - - - - - - Total transfers and subsidies 1 162 633 442 929 1 605 562 1 535 180 95.6% - 70 382 4.4% 1 128 615 1 867 1 130 482 1 019 411 90.2% - 111 071 9.8%Payments for capital assets 5 885 59 299 65 184 19 637 30.1% - 45 547 69.9% 22 360 4 891 27 251 14 634 53.7% - 12 617 46.3%Payments for financial assets - - - - - - - 120 120 120 100.0% - - 0.0%Total 1 380 507 492 572 1 873 079 1 757 103 93.8% - 115 976 6.2% 1 350 668 (7 974) 1 342 694 1 218 995 90.8% - 123 699 9.2%

HUMAN SETTLEMENTS

59




Actual Expenditure 35 038 112 856 143 799 114 809 114 813 193 002 172 258 129 883 387 624 (202 296) 362 058 193 259


(300 000)

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HUMAN SETTLEMENTS

Human Settlements

• The department underspent on Transfers and subsidies as well as on payments of capital assets and this was due to budget adjustment that added funds to the Human Settlement Development grant (R70.0 million) and amount (R36.8 million) that was added to payments of capital assets and could not be spent before the end of the financial year.

• A rollover has been requested as the funds were committed.• The department has transferred R273 million to municipalities to

support them in bulk infrastructure and has to ensure that the funds are correctly utilized and that they are used for the intended purpose.

• Funds were gazetted as requirements of the Division of Revenue Act.

61

MPUMALANGA CONDITIONAL GRANTS EXPENDITURE AS AT 31 MARCH 2015

Grant Name Total - National

Allocation National

Additional Provincial roll overs

Total Adjusted Budget

Transfers from National

Received by Department

Spent by Department as at 31 Mar

2015


2015

(Over) / under-

spending

Cash available less Actual

spending G-F

Expenditure as %

Budget (G/D)

% Expenditure to Transfers

(G/F)A B C D E F G H I J K L

R'000 R'000 R'000 R'000 R'000 R'000 R'000 R'000 R'000 R'000 % %Agriculture, Rural Development And Land Administration

Comprehensive Agricultural Support Programme Grant 135 810 - - 135 810 108 901 108 901 109 081 - 26 729 (180) 80% 100%

Ilima/Letsema Projects Grant 46 062 - - 46 062 46 062 46 062 45 884 - 178 178 100% 100%

Land Care Programme Grant: Poverty Relief and Infrastructure Development 6 105 - - 6 105 6 105 6 105 6 118 - (13) (13) 100% 100%

Expanded Public Works Programme Integrated Grant for Provinces - Agriculture, Rural Development, Land And Environmental Affairs11 274 - - 11 274 11 274 11 274 10 073 - 1 201 1 201 89% 89%

Provincial Disaster Grant - 14 700 - 14 700 14 700 14 700 14 695 - 5 5 100% 100%Culture, Sport and Recreation

Community Library Services grant 114 781 - 1 116 115 897 114 781 115 897 103 493 - 12 404 12 404 89% 89%

Mass Participation and Sport Development Grant 46 959 - - 46 959 46 959 46 959 45 233 - 1 726 1 726 96% 96%Expanded Public Works Programme Integrated Grant for Provinces - Culture, Sport And Recreation2 199 - - 2 199 2 199 2 199 2 451 - (252) (252) 111% 111%Social Sector Expanded Public Works Programme Incentive Grant for Provinces - Culture, Sport And Recreation2 580 - - 2 580 2 580 2 580 2 258 - 322 322 88% 88%Education

Dinaledi Schools Grant 10 228 - - 10 228 10 228 10 228 6 477 - 3 751 3 751 63% 63%

Education Infrastructure Grant 623 602 - - 623 602 623 602 623 602 623 381 - 221 221 100% 100%

HIV and Aids (Life Skills Education) Grant 19 404 - - 19 404 19 404 19 404 19 404 - - - 100% 100%

National School Nutrition Programme Grant 524 913 - 16 723 541 636 524 913 541 636 528 951 - 12 685 12 685 98% 98%

Technical Secondary Schools Recapitalisation Grant 28 682 - - 28 682 28 682 28 682 21 474 - 7 208 7 208 75% 75%

Further Education and Training Colleges Grant 140 989 - - 140 989 140 989 140 989 140 989 - - - 100% 100%

Occupational Specific Dispensation for Education Sector Therapists Grant 1 072 - - 1 072 1 072 1 072 1 072 - - - 100% 100%

Expanded Public Works Programme Integrated Grant for Provinces - Education 3 340 - - 3 340 3 340 3 340 3 337 - 3 3 100% 100%

Social Sector Expanded Public Works Programme Incentive Grant for Provinces - Education6 312 - - 6 312 6 312 6 312 5 889 - 423 423 93% 93%Cooperative Governance and Traditional Affairs

Expanded Public Works Programme Integrated Grant for Provinces - Co-Operative Governance And Traditional Affairs2 000 - - 2 000 2 000 2 000 1 999 - 1 1 100% 100%

62

MPUMALANGA CONDITIONAL GRANTS EXPENDITURE AS AT 31 MARCH 2015

Grant Name Total - National

Allocation National

Additional Provincial roll overs

Total Adjusted Budget

Transfers from National

Received by Department

Spent by Department as at 31 Mar

2015


2015

(Over) / under-

spending

Cash available less Actual

spending G-F

Expenditure as %

Budget (G/D)

% Expenditure to Transfers

(G/F)A B C D E F G H I J K L

R'000 R'000 R'000 R'000 R'000 R'000 R'000 R'000 R'000 R'000 % %Health

Comprehensive HIV and Aids Grant 818 836 - - 818 836 818 836 818 836 818 839 - (3) (3) 100% 100%

Health Facility Revitalisation Grant 343 509 - - 343 509 343 509 343 509 271 516 - 71 993 71 993 79% 79%

National Professions Training and Development Grant 95 288 - - 95 288 95 288 95 288 95 276 - 12 12 100% 100%

National Health Insurance Grant 7 000 - 770 7 770 7 000 7 770 3 286 - 4 484 4 484 42% 42%

National Tertiary Services Grant 97 116 - 4 933 102 049 97 116 102 049 93 833 - 8 216 8 216 92% 92%

Expanded Public Works Programme Integrated Grant for Provinces - Health 2 732 - - 2 732 2 732 2 732 533 - 2 199 2 199 20% 20%

Social Sector Expanded Public Works Programme Incentive Grant for Provinces - Health 3 384 - - 3 384 3 384 3 384 3 384 - - - 100% 100%Human Settlements

Human Settlements Development Grant 1 146 690 70 000 111 270 1 327 960 1 216 690 1 327 960 1 257 579 - 70 381 70 381 95% 95%Public Works, Roads and Transport

Provincial Roads Maintenance Grant 1 594 840 - - 1 594 840 1 594 840 1 594 840 1 594 839 - 1 1 100% 100%

Public Transport Operations Grant 491 418 - - 491 418 491 418 491 418 491 087 - 331 331 100% 100%

Expanded Public Works Programme Integrated Grant for Provinces - Public Works, Roads And Transport12 798 - - 12 798 12 798 12 798 12 795 - 3 3 100% 100%

Provincial Disaster Grant - 35 750 - 35 750 35 750 35 750 35 749 - 1 1 100% 100%Community Safety, Security and Liason

Social Sector Expanded Public Works Programme Incentive Grant for Provinces - Community Safety, Security And Liaison2 580 - - 2 580 2 580 2 580 2 580 - - - 100% 100%Social Development

Expanded Public Works Programme Integrated Grant for Provinces - Social Development 2 024 - - 2 024 2 024 2 024 2 133 - (109) (109) 105% 105%

Social Sector Expanded Public Works Programme Incentive Grant for Provinces - Social Development3 988 - - 3 988 3 988 3 988 3 763 - 225 225 94% 94%Economic Development, Environment and Tourism

Expanded Public Works Programme Integrated Grant for Provinces - Economic Development And Tourism3 561 - - 3 561 3 561 3 561 3 561 - - - 100% 100%

Total 6 352 076 120 450 134 812 6 607 338 6 445 617 6 580 429 6 383 012 - 224 326 197 417 97% 97%

Rollover request – Equitable share

Vote number Department R'0002014/15

Adjusted budgets Unspent Funds

Roll overs Request - equitable

shareRecommended

Rollver

Vote 1 Office of Premier 216 820 5 925 4 195 3 700

Vote 2 Provincial Legislature 291 121 2 451 529 529

Vote 3 Finance 272 024 7 271 744 744

Vote 4Co-operative Governance and Traditional Affairs 465 087 4 006 4 007 3 873

Vote 5Agriculture, Rural Development and Land Administration 1 035 418 30 974

Vote 6Economic Development, Environment and Tourism 764 293 3 258 3 259 3 143

Vote 7 Education 16 263 365 353 478 218 406 217 397

Vote 8 Public Works, Roads and Transport 4 241 591 430 -

Vote 9 Community Safety, Security and Liaison 1 019 005 54 343 11 600 11 600

Vote 10 Health 9 032 547 153 255 -

Vote 11 Culture, Sport and Recreation 443 576 32 473 16 601 16 036

Vote 12 Social Development 1 220 309 6 -

Vote 13 Human Settlements 1 873 079 115 976 36 800 36 800

37 138 235 763 846 296 141 293 822

Rollover request – Conditional Grants

Conditional GrantAmount Unspent R'000

Amount commited and Recommended R'000

Amount to be forfeited

Agriculture, Rural Development, Land and Envirmental Affairs 28 293 - 1 384 Comprehensive Agricultural Support Programme Grant 26 909 Ilima/Letsema Projects Grant 178 - 178 Land Care Programme Grant Poverty Relief and Infrastructure Development - - - EPWP Intergrated Grant for Provinces 1 201 - 1 201 Provincial Disaster Grant 5 - 5

Education 24 291 14 433 9 858 Dinaledi Schools Grant 3 751 3 308 443 Education Infrastructure Grant 221 - 221 HIV and AIDS (life Skills Education) Grant - - - National School Nutrition Programme Grant 12 685 11 125 1 560 Technical Secondary Schools Recapitalisation Grant 7 208 - 7 208 Further Education and Training Colleges Grant - - - OSD for Education Sector Therapists Grant - - - EPWP Integrated Grant for Provinces 3 3 Social Sector EPWP Incentive Grant for Provinces 423 - 423

Corperative Goverance and Traditional Affairs 1 - 1 EPWP Intergrated Grant for Provinces 1 - 1

Public Works, Roads and Transport 336 - 336 Provincial Roads Mainatance Grant 1 - 1 Public Transport Operations Grants 331 - 331 EPWP Integrated Grant for Provinces 3 - 3 Provincial Disaster Grant 1 - 1

Community Safety, Security and Liaison - - - Social Sector EPWP Incentive Grant for Provinces - - -

Economic Development, Environment and Tourism - - - EPWP Integrated Grant for Provinces - - -

Health 86 904 71 993 14 911 Coprehensive HIV and AIDS Grant - - - Hospital Facility Revitalisation Grant 71 993 71 993 - National Professions Training and Develoment Grant 12 12 National health Insurance Grant 4 484 - 4 484 National Tertiary Services Grant 8 216 - 8 216 EPWP Integrated Grant for Provinces 2 199 - 2 199 Social Sector EPWP Incentive Grant for Provinces - - -

Culture, Sport and Recreation 16 329 11 537 4 792 Community Library Services Grant 12 404 10 500 1 904 Mass Participation and Sport Development 1 726 1 037 689 EPWP Intergrated Grant for Provinces 2 199 - 2 199 Social Sector EPWP Incentive Grant for Provinces - - -

Social Development 225 - 225 EPWP Integrated Grant for Provinces - - - Social Sector EPWP Incentive Grant for Provinces 225 - 225

Human Settlements 70 381 70 380 1 Human settlements Development Grant 70 381 70 380 1

TOTAL 226 198 168 343 31 508

65

Previous Yr Actual Actual Actual Actual Actual Actual Actual Actual Actual Actual Actual ActualDEPARTMENT Mar-14 Apr-14 May-14 Jun-14 Jul-14 Aug-14 Sep-14 Oct-14 Nov-14 Dec-14 Jan-15 Feb-15 Mar-15 EDUCATION 46 032 44 587 44 587 44 926 44 841 44 483 44 725 44 660 44 587 44 587 44 587 44 587 44 587 HEALTH 19 080 19 522 19 774 19 629 19 627 19 505 19 434 19 412 19 250 19 223 19 379 19 421 19 455 SOCIAL DEVELOPMENT 1 902 1 901 1 914 1 950 1 980 2 033 2 035 2 063 2 068 2 075 2 083 2 070 2 066 OFFICE OF THE PREMIER 278 282 281 283 286 286 284 276 273 272 268 269 269 MPUMALANGA PROVINCIAL LEGISLATURE 164 177 177 177 177 177 178 178 180 184 185 185 194 FINANCE 366 345 345 346 347 345 343 342 340 327 325 323 327 CO-OPERATIVE GOVERNANCE AND TRADITIONAL AFFAIRS 1 250 1 288 1 288 1 288 1 288 1 553 1 561 1 570 1 570 1 561 1 571 1 571 1 571 AGRICULTURE, RURAL DEVELOPMENT, LAND AND ENVIRONMENTAL AFFAIRS 1 672 1 672 1 672 1 672 1 668 1 701 1 701 1 701 1 701 1 657 1 672 1 672 1 672 ECONOMIC DEVELOPMENT AND TOURISM 419 458 458 459 455 438 435 432 430 432 271 270 267 PUBLIC WORKS, ROADS AND TRANSPORT 3 694 3 657 3 657 3 581 3 581 3 580 3 580 3 580 3 580 3 580 3 580 3 580 3 580 COMMUNITY SAFETY, SECURITY AND LIAISON 1 911 1 919 1 919 1 919 1 919 1 919 1 919 1 919 1 919 1 919 1 919 1 919 1 919 CULTURE, SPORT AND RECREATION 329 324 333 335 335 337 337 337 339 427 427 427 427 HUMAN SETTLEMENTS 374 384 384 386 385 389 387 381 419 383 384 387 388TOTAL HEADCOUNT 77 471 76 516 76 789 76 951 76 889 76 746 76 919 76 851 76 656 76 627 76 651 76 681 76 722

MPUMALANGA PROVINCIAL PERSONNEL NUMBERS AS AT 31 MARCH 2015 - as per IYM

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