presented by cathy motsisi chief financial officer
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Presented by Cathy Motsisi Chief Financial Officer. Monthly Financial Performance report 31 December 2011. Summary: Expenditure per Economic Classification – (Linear Benchmark 75%). 7% lag from the benchmark of 75%. Financial Performance per Programme – (Linear Benchmark 75%). - PowerPoint PPT PresentationTRANSCRIPT
Presented by Cathy Motsisi
Chief Financial Officer
1
Monthly Financial Performance report
31 December 2011
Summary: Expenditure per Economic Classification –(Linear Benchmark 75%)
Economic classificationBudget
Allocation2011/12
Exp 31 Dec 2011
% Spent as at
31 Dec 2011
% Spent as at 30
Nov 2011
% Spent at 31 Dec2010
R'000 R'000
Compensation of employees
1 252 550 948 843 76% 68% 60%
Goods and services 619 767 414 200 67% 78% 54%
Office Accommodation 403 544 252 149 62% 60% 46%
Transfers and subsidies 4 010 265 3 035 373 76% 74% 65%
Infrastructure 1 443 945 652 610 45% 35% 34%
Machinery and equipment
99 623 50 328 51% 41% 38%
Of which capitalised goods and services is:
32 266 24 066 75% 87% 110%
Total 7 829 744 5 353 503 68% 65% 55%
27% lag from the benchmark of 75%
Financial Performance per Programme –(Linear Benchmark 75%)
Programme
Adjusted budget
allocation2011/12
Exp 31 Dec 2011
% Spent
as at 31 Dec 2011
% Spent as at
30 Nov 2011
% Spent at 31 Dec2010
R'000 R'000
Prog 1. Administration 777 521 573 799 74% 70% 60%
Prog 2. Immovable Asset Management
5 410 5453 862
42171% 68% 57%
Prog 3. Expanded Public Works Programme
1 575 198 864 292 55% 53% 45%
Prog 4. Property and Construction Industry Policy Regulation
34 900 27 791 80% 76% 71%
Prog 5. Auxiliary and Associated Services
31 580 25 201 80% 75% 84%
Total 7 819 2565 353
50368% 65% 55%3
Expenditure per economic classification- Programme One
Economic classificationBudget
Allocation2011/12
Exp 31 Dec 2011
% Spent as at
31 Dec 2011
% Spent as at
30 Nov 2011
% Spent at 31 Dec2010
R'000 R'000
Compensation of employees
181 392149 001
82% 77% 62%
Goods and services 153 898152 018
99% 89% 88%
Property Management 403 544252 149
62% 60% 46%
Transfers and subsidies 594 623 105% 91% 36%
Machinery and equipment
26 092 20 008 77% 167% 106%
Of which capitalised goods and services is:
13 435 9 478 71% 195% 143%
Total 777 521573 799
74% 70% 60%
4
Expenditure per economic classification- Programme Two
Economic classification
Budget Allocatio
n2011/12
Exp 31 Dec 2011
% Spent as at 31
Dec 2011
% Spent as at
30 Nov 2011
% Spent at 31 Dec2010
R'000 R'000
Compensation of employees
960 043 725 579 76% 67% 62%
Goods and services 246 441 141 243 58% 72% 42%
Transfers and subsidies2 687
0932 315
01786% 86% 70%
Infrastructure1 443
945652 610 45% 35% 34%
Machinery and equipment
71 423 27 972 39% 25% 28%
Of which capitalised goods and services is:
18 097 13 926 77% 67% 100%
Total5 410
5453 862
42171% 68% 57%5
Expenditure per economic classification- Programme Three
Economic classificationBudget
Allocation2011/12
Exp 31 Dec 2011
% Spent as at
31 Dec 2011
% Spent
as at 30 Nov 2011
% Spent at 31 Dec2010
R'000 R'000
Compensation of employees
99 110 67 843 68% 60% 43%
Goods and services 172 524 87 679 51% 74% 40%
Transfers and subsidies 1 301 580 706 499
54% 49% 45%
Machinery and equipment
1 984 2 270 114% 92% 83%
Of which capitalised goods and services is:
638 625 98% 84% 53%
Total 1 575 198883 291
56% 53% 45%
6
Expenditure per economic classification- Programme Four
Economic classificationBudget
Allocation2011/12
Exp 31 Dec 2011
% Spent as at 31
Dec 2011
% Spent as at
30 Nov 2011
% Spent at 31 Dec2010
R'000 R'000
Compensation of employees
12 005 6 420 53% 39% 41%
Goods and services 22 771 21 293 94% 88% 88%
Transfers and subsidies -
Machinery and equipment
124 78 63% 54% 68%
Of which capitalised goods and services is:
96 30 31% 27% 47%
Total 34 900 27 791 80% 71% 62%
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Cost drivers:Payment to Agrement SA = R9,8 milBorder Fence = R 6 milIndependent R1,1 mil ( Construction Policy)SAIA R1mil
Expenditure per economic classification- Programme Five
Economic classification
Budget Allocation2011/12
Exp 31 Dec 2011
% Spent as at
31 Dec 2011
% Spent as at 30
Nov 2011
% Spent at 31 Dec
2010
R'000 R'000
Goods and services
12 182 11 967 98% 98% 125%
Transfers and subsidies
19 398 13 234 68% 62% 79%
Total 31 580 24 923 76% 75% 84%
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Budget and Expenditure per Branches and Regional offices
9
Analysis of the Current Budget per Branch - 31 December 2011Branches Compensation of Employees Goods & Services
BudgetR’000
ExpR’000
%Spent
BudgetR’000
ExpR’000
% Spent
Minister and Support 8 558 6 242 73% 10 000 6 037 60%
Deputy. Minister and Support
5 369 3 771 70% 6 100 4 262 70%
Asset Management 25 707 22 072 86% 5 250 4 534 86%
EPWP 63 818 33 776 53% 152 630 75 484 49%
Projects 65 106 46 842 72% 11 030 9 442 86%
Policy Regulation 9 162 6 353 69% 8 970 5 808 65%
Inner City 6 609 5 066 77% 1 100 793 72%
KAM and Prestige 20 393 15 217 75% 2 400 1 531 64%
DG Direct Reports 36 106 28 561 79% 10 840 7 114 66%
COO and Direct Reports
8 069 7 064 88% 1 830 1 439 79%
Corporate Services 72 603 66 979 92% 76 365 88 965 116%
Regions 868 288 664 955 77% 132 672 135 157 102%
Finance and SCM 52 270 42 122 81% 23 590 23 424 99%
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Analysis of the Regions Budget per Branch - 31 December 2011
Branches Compensation of Employees Goods & Services
BudgetR’000
ExpR’000
%Spent
BudgetR’000
ExpR’000
% Spent
Bloemfontein 76 894 54 618 71% 11 949 7,199 60%
Cape Town 169 540 127 671 75% 24 550 28 184 115%
Durban 116 869 91 013 78% 18 260 15 204 83%
Johannesburg 74 076 57 964 78% 7 405 5 209 70%
Kimberley 41 982 33 642 80% 8 550 7 832 92%
Mmabatho 46 607 36 833 79% 8 900 7 819 88%
Nelspriut 41 716 31 425 75% 8 380 6 815 81%
Polokwane 55 512 42 711 77% 8 600 7 300 85%
Port Elizabeth 74 424 54 306 70% 12 400 9 293 75%
Pretoria 135 699 110 474 81% 17 100 33 181 194%
Umthatha 34 965 26 295 75% 6 578 7 123 108%
TOTAL 868 290 664 952 77% 132 672 135 157 102%
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Expenditure Analysis- Earmarked Funds 31 December 2011
FunctionBudgetR’000
Expenditure30 Dec 2011
R’000
% Spent30 Dec
2011
% Spent30 Dec
2010
Office Accommodation 403 544 252 149 62% 35%
DPW Infrastructure 1 443 945 652 610 45% 34%
CIDB 65 959 65 959 100% 50%
CBE 27 059 27 059 100% 50%
Agrement Board 9 431 9 431 100% 100%
IDT (Sustainability) 150 000 150 000 100% 0%
Boundary Fencing 7 000 6 091 87% 90%
Aug of PMTE 630 189 630 189 100% 50%
Property Rates – Conditional Grants 1 803 230 1 431 986 79% 54%
EPWP Incentives to Provinces 267 269 150 027 56% 22%
EPWP Incentives to Municipalities 679 583 242 305 36% 17%
IDT Intermediaries 9 180 9 180 100% 100%
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Expenditure Analysis- Earmarked Funds Cont.
FunctionBudgetR’000
Expenditure31 Oct 2011
R’000
% Spent31 Nov
2011
% Spent31 Nov2010
EPWP – Non State Sector 154 370 154 370 100% 52%
EPWP – Social Sector (Province) 200 358 159 762 80% 100%
CETA (HR) 2 482 278 11 % 0%
Parliamentary Villages 7 401 7 401 100 % 100%
Energy Efficiency (PPM) 70 000 52 000 74% 0%
Audit fee 30 000 33 110 110% 82%
Compensation for Losses 2 062 - 0% 0%
State Function 10 119 11 967 118 % 173%
Common Wealth War Graves 18 515 12 956 70% 79%
Distress relief 1 - 0% 0%
Loskop Settlement 1 - 0% 0%
Updating of Asset Register 30 000 - 0% 0%
Total 6 046 480 3 3 995 789 66% 43%
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Notes to the expenditureCompensation of employees
Expenditure under compensation of employees is above the guideline by 1%. The major contributing factors are the new posts created, performance bonus payments and overtime.
New posts created for the following units:- Information System- Supply Chain Management (Movable Assets)- Finance (Compliance and Trading Entity)
- Security Management and Human Resource
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Notes to the expenditure
Goods and services
• Expenditure for goods and services for month ended November 2011 is R468 million, and expenditure is equivalent to 78% of the total allocation of R 604 million.
• Payment for energy efficiency has been processed, and expenditure is classified under advance since the work is still in progress. Once report received expenditure will be moved to voted fund.
• Office Accommodation expenditure for the end of November is R242 million and expenditure is equivalent to 60 % of the total allocation.
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16
Notes to the expenditure Goods and services• In comparison with expenditure for the expenditure for the same
period last year, the following were identified as cost pushing items:
Items 2011/12R`000
2010/11R`000
% Change
Audit fees 33 110 26 396 25%
Telephone 15 327 14 172 8%
Events (state functions) 29 735 20 875 42%
Professional staff 26 178 14 118 85%
Fuel for fleet cars and generator 22 355 13 364 67%
Accommodation (including international)
22 304 10 764 107%
Air transport (including international) 23 017 15 575 48%
Kilometers own transport including GG vehicles
24 560 18 966 29%
196 586 134 230 46%
17
Notes to the expenditure on Goods & Services
Telephone Services
•Telephone expenditure for the month ended December is 8% higher in comparison to the same period last financial year.•The following offices have contributed significantly to the high expenditure:
- Head Office R 4.727 million- Pretoria Region R 2.395 million- Mmabatho Region R 1.334 million- Cape Town Region R 1.228 million- Durban Region R 1.197 million
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Notes to the expenditure on Goods & Services cont.
State Functions•Expenditure of R 29.7 million relates to both state events and state funeral.
Professional Staff•Expenditure for Professional staff amounting to R26.178 million represents an increase of 85% for the same time last year. The cost drivers are Information Systems = R 15.3 million and Construction Policy for Agrement SA – R9 million.
Fuel & Fleet Services % •Expenditure for fuel for fleet services of R22.355 million represents an increase of 67% for the same time last financial year. The following offices are showing high spending:
- Head Office R 1.902million- Cape Town R 8.649 million- Pretoria Region R 2.058 million- Mafikeng Region R 1.535 million- Johannesburg R 1.129 million- Durban Region R 1.603 million- Umthatha R 1.132 million
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Notes to the expenditure on Goods & Services cont.
Travel & Accommodation •Expenditure for accommodation is 107% higher in comparison to the same time last financial year. Head office accounts for 41% of the total expenditure of R22 304 million.• The following units/branches within head office have expenditure exceeding a million:
- Expanded Public Works Programme R 2.754 million- Projects R 1.187 million- Corporate Services R 1.540 million- Ministry R 1.229 million
•Expenditure for air transport is higher by 48% in comparison to the same time last financial year. The following units in Head office accounts for 65% of the total expenditure of R23 017 million:
– Expanded Public Works Programme R 3.327 million– Corporate Services R 2.443 million– Projects R 1.846 million– DG and COO including direct reports R 1.597 million
Debtors and Revenue Management
BAS Debtors December 2011
Staff & Suppliers Debtors Age Analysis
Type of Debt debtors
0-3
Mths
3-6 Mths
6-12 Mths
1-3yrs >3Yrs TOTAL
Breach of contract Bursary holders
83 0 91,557 364,220 422,882 269,066 1,147,724
Employees 52 4,074 20,457 36,403 94,481 38,006 193,421
Ex- Employees 438 0 3,513 114,435 555,487 1,401,409 2,074,844
GG Accidents 0 0 0 0 0 0 0
State Guarantees
0 0 0 0 0 0 0
Telephone 6 208 607 117 0 0 932
Suppliers 38 0 833,365 5,100 830,649 5,852,521 7,521,635
TOTAL 617 4,282 949,499 520,275 1,903,499 7,561,001 10,938,556
87% of the debt is older than 3 years = doubtful debts
Staff & Suppliers Debtors Age Analysis Per Region
Regions debtors
0-3
Mths
3-6 Mths
6-12 Mths 1-3yrs >3Yrs TOTAL
Head Office 178 4,282 941,585 473,904 1,480,095 734,456 3,634,322
Durban 101 0 0 247 108,018 405,058 513,322
Polokwane 44 0 6,197 11,133 17,169 34,159 68,658
Umtata 32 0 0 0 88,324 122,566 210,889
Port Elizabeth
4 0 0 0 10,191 0 10,191
Cape Town 201 0 1,717 9,484 114,683 5,403,420 5,529,259
Bloemfontein 17 0 0 23,008 31,059 22,532 76,599
Kimberley 6 0 0 2,498 750 780,785 784,033
Joburg 6 0 0 0 2,338 9,191 11,528
Pretoria 25 0 0 0 49,196 48,835 98,031
Mmabatho 3 0 0 0 1,723 0 1,723
TOTAL 4,282 949,499 520,275 1,903,499 7,561,001 10,938,556
Debtors Analysis• Other Debts• Head Office
– South African Institute of Architects (SAIA) – R1,6 million• SAIA won the bid to host the UIA World Congress in Durban in 2014 and
undertook to pay UIA the required amount of €550 000 in seven installments. SAIA requested DPW to provide the required guarantee on their behalf.
• The amount of R1,5m was paid to UIA on behalf of SAIA. In terms of the MOU SAIA undertook to repay DPW plus interest any amount paid on their behalf for the guarantee called upon.
• DPW may be required to make other payments in terms of the guarantee.• This account will be outstanding till 2014 after the conference where SAIA
is expecting to generate revenue. No interest is being charged on this account at this stage. Finance wrote a letter as part of the process to inform debtors about outstanding balance.
RENTAL DEBTORS
Ministers/DMs/MPs Rental Debtors Age Analysis31 December 2011
Current 30 days 60 days 90 days+ Balance Credit balance
MPs 44,844.99 3,061.27 2,816.07 23,183.89 73,905.22 2,081.91
Former MP’s 0 0 0 291,111.48 291,111.48 0.00
Ministers/ Deputy Ministers
24,965.52 18,896.63 14,580.87 95,768.75 154,211.77 19,016.52
Former Ministers/
Deputy Ministers
0 0 950.85 170,910.76 171,861.61 0.00
TOTAL 69,809.51 21,957.90 18,347.79 580974.88 691,090.08 21,098.43
I Thank You
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