EXPENDITURE REPORT
30 SEPTEMBER 2015
Presentation to the Audit Committee
22 October 2015
1
1.
BUDGET AND EXPENDITURE OUTCOMES PER PROGRAMME
The report presents a summary of the budget and expenditure outcomes for the period
ending 30 September 2015 per programme and economic classification.
PROVINCIAL LEGISLATURE EXPENDITURE AS AT 30 SEPTEMBER 2015
R Thousands
Main
Budget
2015/16
Actual to Outcome Projection (Over) /
the end of
as %
s to end of underSep 2015 Budget
Mar 2016 spending
% (Over) /
underspending
Programme
ADMINISTRATION
128 291
66 804
52,1%
73 621
( 12 134)
-9,5%
PARLIAMENTARY BUSINESS
166 662
76 191
45,7%
80 775
9 696
5,8%
Total
294 953
142 995
48,5%
154 396
( 2 438)
-0,8%
143 563
62 678
43,7%
72 890
7 995
5,6%
98 717
47 685
48,3%
48 266
2 766
2,8%
Economic classification
Compensation of employees
Goods and services
Interest and rent on land
-
-
-
Total transfers and subsidies
51 493
26 698
51,8%
24 795
Payments for capital assets
1 180
5 934
502,9%
8 445
Payments for financial assets
-
-
Total
294 953
142 995
48,5%
154 396
( 13 199)
0,0%
-1118,6%
( 2 438)
-0,8%
The total expenditure for the period amounts to R142.9 million or 48.5% of the total
budget allocation of R294.9 million. The overall percentage spending for the period is
within the acceptable margin of deviation.
Included in expenditure is a portion of accruals from 2014/2015 financial year of R7.595
million of which R7.560 million was paid as at the end of the second quarter.
Compensation of employees
The low spending was caused by budgeted posts which were not filled by the end of the
reporting period and performance based awards and annual salary pay progression.
Goods and services
The overall spending is acceptable for the period. However budget shortfalls are noted
under the separate presentation of Programme 1 on this item, which is mainly due to
accruals and budget shortfall on IT and other institutional support services.
2
Capital assets
High spending for the period and projected over spending at year end is due to
payments for the revamp of the chamber system.
Transfers and subsidies
Spending is for political party funding and is in accordance with the transfer schedule.
Measures to address deviations
•
•
•
•
•
•
•
Filling of positions is an ongoing process – savings will be sourced from this item
to address shortfalls on goods and service and capital assets
Performance assessments were processed in October 2015 for staff accept for
Senior Management.
Annual salary adjustments for Members are expected to be promulgated in the
4th quarter.
Refrain from new contracts which are not adequately funded for the year and the
next MTEF.
Source funding from slow moving, non-core items and retained income to fund
budget shortfalls on contractual obligations including the chamber system during
the adjustment appropriation processes.
Continue to implement cost curtailment measures
• Cost Containment Action Plan to alleviate budget pressures
Continue to monitor progress on budget and expenditure outcomes on monthly
and quarterly basis.
3
Programme 1 – Administration
ADMINISTRATION
R Thousands
Main
Budget
2015/16
Actual to
the end of
Sep 2015
Outcome Projection (Over) /
as %
s to end of underBudget
Mar 2016 spending
% (Over) /
underspending
Sub-subprogramme
Office of the Speaker
12 377
5 066
40,9%
6 015
1 296
10,5%
Office of the Secretary
15 545
5 493
35,3%
7 913
2 139
13,8%
Corporate Services
77 575
45 383
58,5%
51 363
( 19 171)
-24,7%
Financial Management
22 794
10 862
47,7%
8 330
3 602
15,8%
128 291
66 804
52,1%
73 621
( 12 134)
-9,5%
Compensation of employees
68 915
28 982
42,1%
35 622
4 311
6,3%
Goods and services
58 196
31 888
54,8%
29 554
( 3 246)
-5,6%
Total
Economic classification
Interest and rent on land
-
-
Total transfers and subsidies
-
-
1 180
5 934
-
-
Payments for capital assets
Payments for financial assets
Total
128 291
66 804
502,9%
8 445
-
52,1%
73 621
( 13 199)
-1118,6%
( 12 134)
-9,5%
The programme spent R66.8 million i.e. 52.1% of the total budget of R128.2 million. The
expenditure is above the straight-line benchmark for the second quarter.

Spending on goods and services is high mainly due to the 2013/14 accruals,
seen mainly under Corporate Services Sub-programme. It must also be noted
that contractual obligations are located in this Sub-programme. These include
rental of buildings, security services, transport services, IT infrastructure and
other general support services.

Low spending under other sub-programmes is mainly due to budget allocations
for vacant positions and cost containment measures.

High spending for the period and projected over spending on capital assets
4
Programme 2 – Parliamentary Business
PARLIAMENTARY BUSINESS
R Thousands
Main
Budget
2015/16
Actual to
the end of
Sep 2015
Outcome Projection (Over) /
as %
s to end of underBudget
Mar 2016 spending
% (Over) /
underspending
Sub-subprogramme
Law Making
29 582
8 253
27,9%
13 139
8 190
27,7%
Oversight
40 418
17 659
43,7%
18 953
3 806
9,4%
Public Participation and Petition
13 047
5 713
43,8%
6 704
630
4,8%
Members Affairs and Political Parties
78 630
41 848
53,2%
39 733
( 2 951)
-3,8%
4 985
2 718
54,5%
2 246
21
0,4%
166 662
76 191
45,7%
80 775
9 696
5,8%
Compensation of employees
74 648
33 696
45,1%
37 268
3 684
4,9%
Goods and services
40 521
15 797
39,0%
18 712
6 012
14,8%
Parliamentary Advisory Services
Total
Economic classification
Interest and rent on land
Total transfers and subsidies
51 493
26 698
Payments for capital assets
-
-
Payments for financial assets
-
-
Total
166 662
76 191
51,8%
24 795
-
45,7%
80 775
-
0,0%
9 696
5,8%
The total expenditure for the programme is at R76.1 million i.e. 45.7% of the allocated
budget of R166.6 million. The overall spending for the programme is below the straightline benchmark for the second quarter.



Low spending on sub programmes is due to vacant funded positions not filled
and projects to be implemented in the next quarters, which include Sectorial
Parliaments, chamber sittings, portfolio and select committee meetings, outreach
programmes, SOPA and TLP events.
High spending on Members Affairs and Political Parties is attributed to foreign
travel by Members. This sub-programme is projecting to overspend at year. Due
processes are followed as part of the adjustment processes to review the
projections or allocate additional funding as the expenditure is core to the
Members’ deliverables.
High spending on Parliamentary Advisory Services is due to event for Africa Day
conducted in the first quarter. The sub-programme is expected to be stable at
year end.
___________________
MR LJ MWALE
SECRETARY TO THE MPUMALANGA PROVINCIAL LEGISLATURE
Date:____________
5
Summary of cost centres
Programme 1: Administration
Office of the Speaker
Secretariant Services
R Thousands
Actual to
Outcome
Original the end of
as %
Budget September
Budget
2015
Available
Budget
Economic classification
Compensation of employees
5 748 264 2 707 091
47,09
3 041 173
Goods and services
2 154 736
740 486
34,37
1 414 250
Total
7 903 000 3 447 577
43,62
4 455 423
Treasury
R Thousands
Actual to
Outcome
Original the end of
as %
Budget September
Budget
2015
Available
Budget
Economic classification
Compensation of employees
Goods and services
Total
2 299 593
755 026
32,83
1 544 567
275 407
75 226
27,31
200 181
2 575 000
830 252
32,24
1 744 748
6
Office of the Secretary
Office of the Secretary
R Thousands
Actual to
Outcome
Original the end of
as %
Budget September
Budget
2015
Available
Budget
Economic classification
Compensation of employees
4 173 192 1 427 804
34,21
2 745 388
Goods and services
1 594 808
453 239
28,42
1 141 569
Total
5 768 000 1 881 043
32,61
3 886 957
PPM&E
R Thousands
Actual to
Outcome
Original the end of
as %
Budget September
Budget
2015
Available
Budget
Economic classification
Compensation of employees
3 104 216 1 487 759
47,93
1 616 457
Goods and services
1 070 784
152 982
14,29
917 802
Total
4 175 000 1 640 741
39,30
2 534 259
7
Internal Audit
R Thousands
Actual to
Outcome
Original the end of
as %
Budget September
Budget
2015
Available
Budget
Economic classification
Compensation of employees
1 500 838
703 790
46,89
797 048
Goods and services
2 365 162
377 097
15,94
1 988 065
Total
3 866 000 1 080 887
27,96
2 785 113
Risk Management
R Thousands
Actual to
Outcome
Original the end of
as %
Budget September
Budget
2015
Available
Budget
Economic classification
Compensation of employees
Goods and services
Total
1 500 838
700 196
46,65
800 642
235 162
190 585
81,04
44 577
1 736 000
890 781
51,31
845 219
Corporate services
8
Management
R Thousands
Actual to
Outcome
Original the end of
as %
Budget September
Budget
2015
Available
Budget
Economic classification
Compensation of employees
Goods and services
Total
1 779 563
865 391
48,63
914 172
343 437
70 713
20,59
272 724
2 123 000
936 104
44,09
1 186 896
Human Capital Management
Actual to
Outcome
Original the end of
as %
Budget September
Budget
2015
Available
Budget
Compensation of employees
9 986 037 4 882 287
48,89
5 103 750
Goods and services
5 748 963 2 659 665
46,26
3 089 298
Total
15 735 000 7 541 952
47,93
8 193 048
R Thousands
Economic classification
9
Information Technology
R Thousands
Actual to
Outcome
Original the end of
as %
Budget September
Budget
2015
Available
Budget
Economic classification
Compensation of employees
Goods and services
Capital Assets
Total
4 779 969 1 706 774
35,71
3 073 195
16 474 881 10 872 815
66,00
5 602 066
616 150 5 806 087
942,32
(5 189 937)
21 871 000 18 385 676
84,06
3 485 324
Communication
Actual to
Outcome
Original the end of
as %
Budget September
Budget
2015
Available
Budget
Compensation of employees
5 372 019 2 018 917
37,58
3 353 102
Goods and services
3 683 981 1 216 164
33,01
2 467 817
Total
9 056 000 3 235 081
35,72
5 820 919
R Thousands
Economic classification
10
Institutional Support
R Thousands
Actual to
Outcome
Original the end of
as %
Budget September
Budget
2015
Available
Budget
Economic classification
Compensation of employees
10 967 729 4 261 249
38,85
6 706 480
Goods and services
17 256 421 10 894 925
63,14
6 361 496
22,73
435 688
Capital Assets
Total
563 850
128 162
28 788 000 15 284 336
53,09 13 503 664
Financial governance
Management
R Thousands
Actual to
Outcome
Original the end of
as %
Budget September
Budget
2015
Available
Budget
Economic classification
Compensation of employees
Goods and services
Total
1 800 979
813 784
45,19
987 195
332 021
98 405
29,64
233 616
2 133 000
912 189
42,77
1 220 811
11
Finance
R Thousands
Actual to
Outcome
Original the end of
as %
Budget September
Budget
2015
Available
Budget
Economic classification
Compensation of employees
7 210 385 3 261 950
45,24
3 948 435
Goods and services
5 711 615 3 804 049
66,60
1 907 566
Total
12 922 000 7 065 999
54,68
5 856 001
Supply Chain Management
R Thousands
Actual to
Outcome
Original the end of
as %
Budget September
Budget
2015
Available
Budget
Economic classification
Compensation of employees
Goods and services
Total
7 045 510 2 677 920
38,01
4 367 590
206 610
29,79
486 880
7 739 000 2 884 530
37,27
4 854 470
693 490
12
Summary of cost centres
Programme 2: Parliamentary Business
Law making
Management
R Thousands
Actual to
Outcome
Original the end of
as %
Budget September
Budget
2015
Available
Budget
Economic classification
Compensation of employees
1 779 563
167 586
Goods and services
17 741 437 3 781 451
Total
19 521 000 3 949 037
9,42
1 611 977
21,31 13 959 986
20,23 15 571 963
13
Parliamentary Proceedings
R Thousands
Actual to
Outcome
Original the end of
as %
Budget September
Budget
2015
Available
Budget
Economic classification
Compensation of employees
8 407 735 3 558 712
42,33
4 849 023
Goods and services
1 653 265
747 652
45,22
905 613
Total
10 061 000 4 306 364
42,80
5 754 636
Committees and NCOP Support
R Thousands
Actual to
Outcome
Original the end of
as %
Budget September
Budget
2015
Available
Budget
Economic classification
Compensation of employees
16 108 909 6 796 771
42,19
9 312 138
Goods and services
2 950 091 1 160 380
39,33
1 789 711
Total
19 059 000 7 957 151
41,75 11 101 849
Oversight
14
Legal Services
R Thousands
Actual to
Outcome
Original the end of
as %
Budget September
Budget
2015
Available
Budget
Economic classification
Compensation of employees
3 891 234 1 922 410
49,40
1 968 824
Goods and services
1 837 766
589 241
32,06
1 248 525
Total
5 729 000 2 511 651
43,84
3 217 349
Research
R Thousands
Actual to
Outcome
Original the end of
as %
Budget September
Budget
2015
Available
Budget
Economic classification
Compensation of employees
9 182 735 4 715 468
51,35
4 467 267
Goods and services
2 213 265 1 377 750
62,25
835 515
Total
11 396 000 6 093 218
53,47
5 302 782
15
Public participation
Public Participation
R Thousands
Actual to
Outcome
Original the end of
as %
Budget September
Budget
2015
Available
Budget
Economic classification
Compensation of employees
7 495 654 3 172 348
42,32
4 323 306
Goods and services
5 551 346 2 540 463
45,76
3 010 883
13 047 000 5 712 811
43,79
7 334 189
Total
Parliamentary Advisory Services
R Thousands
Actual to
Outcome
Original the end of
as %
Budget September
Budget
2015
Available
Budget
Economic classification
Compensation of employees
3 861 660 2 083 537
53,95
1 778 123
Goods and services
1 123 340
634 901
56,52
488 439
Total
4 985 000 2 718 438
54,53
2 266 562
16
Members Benefits
R Thousands
Actual to
Outcome
Original the end of
as %
Budget September
Budget
2015
Available
Budget
Economic classification
Compensation of employees
23 920 000 11 282 226
47,17
12 637 774
Goods and services
3 217 000 3 865 599
120,16
( 648 599)
Transfers and subsidies
51 493 000 38 817 443
75,38
12 675 557
Total
78 630 000 53 965 268
68,63
24 664 732
Parliamentary Committees
R Thousands
Actual to
Outcome
Original the end of
as %
Budget September
Budget
2015
Available
Budget
Economic classification
Compensation of employees
-
-
0,00
-
Goods and services
4 234 000 1 096 658
25,90
3 137 342
Total
4 234 000 1 096 658
25,90
3 137 342
17
Legislature Committees
R thousand
Health and Social Development
Education, Culture, Sports and Recreation
Co-operative Governance and Traditional Affairs and Human Settlements
Committee on Premier Office and Finance
Agriculture, Rural Development and Land Administration
Legislature Oversight
Public Works, Roads and Transpot, community Safety. security and Liason
Public Account
Committee of Chairperson
Committee of Rules and order
Committee on Programming and Prioritisation
Select committee on Public Participation and petition
Select committee on Quality of Life and status Women
Select committee on Ethics
Select committee on Members Affairs
Total payment and estimates
Original BudgetQuarter Expenditure
Available
427 860
341 776
312 376
678 932
381 632
150 000
298 724
730 276
165 900
5 252
48 300
253 820
339 152
50 000
50 000
4 234 000
184 236
109 483
190 909
153 703
53 894
5 485
76 798
239 248
12 330
1 507
6 354
37 800
22 102
0
2 809
1 096 658
243 624
232 293
121 467
525 229
327 738
144 515
221 926
491 028
153 570
3 745
41 946
216 020
317 050
50 000
47 191
3 137 342
% outcome
43,1
32,0
61,1
22,6
14,1
3,7
25,7
32,8
7,4
28,7
13,2
14,9
6,5
5,6
25,9
18