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Public hearing on conditional grants and capital expenditure: 3rd quarter

Presentation to Select Committee on FinanceNorthern Cape’s Department of Agriculture and Land Reform19 February 2007

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Overview Equitable share versus Conditional Grant

allocation 3rd quarter expenditure on conditional grants Conditional grant spending vs. cash allocation Conditional Grant expenditure Jan 2007 Expenditure trends per month Situation analysis on conditional grants Monitoring and Evaluation Challenges for conditional grants Plans to improve delivery on conditional

grants

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Trends: equitable share versus conditional grant allocation

SUMMARY COMPARISON BASED ON ORIGINAL ALLOCATIONS

  05/06 06/07 Increase % increase

Equitable Share 97,002 103,664

6,662 7%

Conditional Grants 18,320 24,782 6,462 35%

  115,322

128,446

13,124 11%

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3rd quarter expenditure – Conditional Grants

Conditional Grant 2006/2007 allocation

  Budget Actual %

CASP 22,496 12,460 55%

LAND CARE 8,023 6,019 75%

PIG 4,808 2,632 55%

TOTAL 35,327 21,111 60%

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Conditional Grant spending versus cash allocation

Conditional Grant 3rd quarter allocation

  Cash received Actual spent %

CASP 12,622 12,460 99%

LAND CARE 4,629 6,019 130%

PIG  1,611 2,632

  163%

TOTAL 18,862 21,111 112%

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End January 2007 expenditure – Conditional GrantsConditional Grant 2006/2007 allocation

  Budget Actual %

CASP 22,496 15,559 69%

LAND CARE 8,023 6,626 83%

PIG 4808 2797 58%

TOTAL 35,327 24,982 71%

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Expenditure trends per monthConditional Grant April May June July Aug Sep Oct Nov Dec Jan Total

                       

CASP 820 1826 3202 809 773 1660 737 363 2269 3100 15559

LAND CARE 127 323 810 803 44 536 958 1042 1376 607 6626

PIG 0 0 63 11 184 887 37 202 1248 165 2797

                       

TOTAL 947 2,150 4,075 1,624 1,001 3,084 1,732 1,607 4,893 3,872 24,982

0

5000

10000

15000

20000

25000

30000

April May June July Aug Sep Oct Nov Dec Jan Total

CASP

LAND CARE

PIG

TOTAL

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Situation Analysis - CASP Situation analysis

28 projects implemented during 2005/6 with a budget of R 13,148m Struggled to complete all projects and thus requested R6,719

m rollover Only 12 new projects approved for 2006/7 with budget

of R15,777 m Officials concentrated on completing projects remaining

from 2005/6 and implementing new projects for 2006/7 Expenditure 3rd quarter

The total transfer received from National to Province by the third quarter is R 12,622 million and R12,460m actual expenditure as at end December ’06.

99% of the transfer received was spent

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Situation Analysis – Land Care Situation analysis

15 projects implemented during 2005/6 with a budget of R2,000 m Requested rollover of R1,873 m

15 projects approved for 2006/7 with a budget of R5,785 m Expenditure

R 4,629 m transferred from National to Province by the 3rd quarter and R 6,019 m actual expenditure as at end Dec

’06. 130% of transfer received was spent

Issues requiring on-going attention Monitoring of the implementation phase Conflict management within communities/project

beneficiaries All projects tenders already advertised Project schedule still on track

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Situation Analysis - PIG Situation analysis

8 projects implemented during 2005/6 with a budget of R3,172

R1,588 requested for roll over 5 projects approved for 2006/7

Expenditure Transfer from National to Province by 3rd quarter is

R1,611 R2,632 m actual expenditure as at end December

’06. 163% of the transfer received was spent

Issues requiring on-going attention PIG projects in tendering phase during 1st quarter Implementation only in 2nd and 3rd quarter

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Monitoring and Evaluation Senior management evaluates

expenditure monthly Project Coordinating Committee

established and meetings held quarterly Assesses project proposals Recommends for approval Assesses and evaluates progress

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Challenges for conditional grants Same officials have to implement new projects

and provide after-care at the same time More demands by other land reform beneficiaries

especially the more they see implementation and changes in the neighbouring approved projects or communities

Credit facilities for BEE contractors problematic thus a delay in delivery of material and other services

Some of the suppliers do not deliver material on the agreed timeframes and that delays payment

Some of the companies experience cash flow problems during the course of completing a project

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Plans to improve delivery on conditional grants

Conditional GrantSpent byFebruary 15th

ProjectionFebruary 28th

ProjectionMarch 15th

ProjectionMarch 27th

TotalProjections

CASP 756 2,500 2,744 937 6,181

LAND CARE 267 700   430   1,130

PIG 235 889 887   1,776

           

TOTAL 1,258 4,089 4,061 937 9,087

2006/7 projectsEnsure that 2006/7 projects are implemented according to plansNot to allow any roll-overs from 2006/7Monitor and assess implementation through

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Plans to improve delivery on conditional grants

Monthly review of expenditure Holding quarterly reviews with project leaders Senior managers visiting projects regularly to monitor

progress

2007/8 projects Completed business plans for 2007/8 projects by

end of September 2006 Advertise tenders between Jan-March 2007 Start implementing as of April 2007

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Trends in capital expenditure

Programmes for 2006/2007

Main Appropriatio

nR'000

3rd quarter spending

R'000 % spent

Administration 260 664 255%

Sustainable Resource Management 8053 2494 31%

Equitable 30 17 57%

Conditional Grants 8,023 2477

 31%

Farmer Support and Development 28,419 12327 43%

Equitable 1,115 1,406 126%

Conditional Grants 27,304 10921 40%

Veterinary Services 111 286 258%

Technological Research and Development 190 203 107%

Agricultural Economics 31 0 0.00%

Total 37,064 15974 43%

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Solar Power for Stock Watering

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Sub surface Drainage Installation

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Sub surface Drainage Installation

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Soil Conservation

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