Mpumalanga Provincial Budget and Expenditure
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Presentation to the Select Committee on Finance on Mpumalanga 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. MPUMALANGA PROVINCIAL EXPENDITURE AS AT 31 MARCH 2015 R Thousands Actual to Outcome Projections (Over) / % (Over) Total Actual to Outcome Projections (Over) / % (Over) Main Budget Total Adjusted Main Budget Adjusted the end of as % to end of under- / underAdjustme the end of as % to end of under- / under2014/15 Adjustments Budget 2013/14 Budget Mar 2015 Budget Mar 2015 spending spending nts Mar 2014 Budget Mar 2014 spending 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% 97.6% - 257 107 2.4% 9 523 610 307 401 9 831 011 9 577 930 97.4% - 253 081 2.6% Non-Social Services 10 143 308 478 706 10 622 014 10 364 907 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 CO-OPERATIVE GOVERNANCE AND TRADITIONAL AFFAIRS 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% 418 792 46 295 465 087 461 081 99.1% - 4 006 0.9% 425 908 425 709 399 359 93.8% - 26 350 6.2% (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% 761 035 99.6% - 3 258 0.4% 831 040 99.9% - 1 069 0.1% 4 241 161 100.0% - 430 0.0% 3 947 164 100.0% - 1 046 0.0% 1 104 548 1 099 183 99.5% - 5 365 0.5% 379 507 373 622 98.4% - 5 885 1.6% 6.2% 1 350 668 (7 974) 1 342 694 1 218 995 2.1% 33 659 365 566 150 34 225 515 33 709 078 90.8% 98.5% - 123 699 516 437 9.2% 1.5% AGRICULTURE, RURAL DEVELOPMENT, LAND AND ENVIRONMENTAL AFFAIRS 1 071 404 ECONOMIC DEVELOPMENT AND TOURISM 861 772 PUBLIC WORKS, ROADS AND TRANSPORT COMMUNITY SAFETY, SECURITY AND LIAISON 4 193 637 47 954 4 241 591 1 027 959 (8 954) 1 019 005 964 662 94.7% - 54 343 5.3% 841 748 262 800 1 368 411 103 92.7% - 32 473 7.3% 351 808 492 572 1 873 079 1 757 103 668 421 37 138 235 36 374 389 93.8% 97.9% - 115 976 763 846 CULTURE, SPORT AND RECREATION HUMAN SETTLEMENTS TOTAL 442 208 1 380 507 36 469 814 (97 479) 764 293 443 576 821 567 (199) 10 542 832 109 3 971 072 (22 862) 3 948 210 27 699 3 MPUMALANGA 5000 000 4500 000 4000 000 Amounts in R Thousands 3500 000 3000 000 2500 000 2000 000 1500 000 1000 000 500 000 - 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 4 Accruals: 2014/15 VOTE Office of the Premier 2014/15 R'000 30 days 30+ days 7 669 - Total 7 669 2013/14 R'000 Total 433 Finance 3 502 123 3 625 2 463 Co-operative Governance and Traditional Affairs 1 510 12 1 522 2 086 10 959 8 681 19 640 28 053 - 2 929 2 929 717 Agriculture, Rural Development, Land and Environmental Affairs Economic Development and Tourism Education Public Works, Roads and Transport Community Safety, Security and Liaison Health Social Development Human Settlements Culture, Sport and Recreation TOTAL 66 103 1 014 67 117 175 993 57 905 233 898 69 067 103 890 172 957 125 608 231 840 357 448 17 715 146 17 861 55 651 26 347 81 998 6 503 6 503 540 280 432 887 973 167 289 476 18 578 86 364 473 039 6 133 6 318 9 884 923 544 MPUMALANGA PROVINCIAL EXPENDITURE AS AT 31 MARCH 2015 by SECTOR Main Budget Total 2014/15 Adjustments 26 326 506 189 715 R Thousands Social Services EDUCATION Adjusted Budget 26 516 221 Actual to the Projections to end of Mar Outcome as end of Mar 2015 % Budget 2015 26 009 482 98.1% 15 909 887 97.8% (Over) / underspending 506 739 % (Over) / underspending 1.9% 353 478 2.2% 16 102 831 160 534 16 263 365 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% Provincial Main Budget vs Expenditure Main Budget 2014/15 Adjusted Budget Actua l to the end of Mar 2015 18000 000 Amount in R Thousands 16000 000 14000 000 12000 000 10000 000 8000 000 6000 000 4000 000 2000 000 EDUCATION HEALTH SOCIAL DEVELOPMENT Non-Social Servi ces Departments 6 ECONOMIC CLASSIFICATION - PROVINCIAL Actual to Outcome Projections (Over) / % (Over) Total Actual to Outcome Projections (Over) / % (Over) Main Budget Total Adjusted Main Budget Adjusted the end of as % to end of under- / underAdjustme the end of as % to end of under- / under2014/15 Adjustments Budget 2013/14 Budget Mar 2015 Budget Mar 2015 spending spending nts Mar 2014 Budget Mar 2014 spending spending R Thousands 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% 99.4% - 40 485 0.6% - ( 2 716) - ( 461) - Interest and rent on land - - 2 716 6 572 347 499 666 7 072 013 7 031 528 - - - 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% 28 521 2604.7% 668 421 37 138 235 36 374 389 97.9% - 9 685 (12 445) (2 760) 2 554 -92.5% ( 27 426) -2504.7% 2.1% 33 659 365 566 150 34 225 515 33 709 078 98.5% 763 846 - ( 5 314) 192.5% 1.5% 516 437 Payments for financial assets Total 5 000 36 469 814 (3 905) 1 095 Provincial Economic Classification Actual Expenditure as Percentage of the Budget Provincial Economic Classifications Expenditure Share Expenditure as % of budget 120.0% 100.0% 99.4% 99.0% Total transfers and subsidies , 4 810 106 98.2% 85.6% 80.0% Interest and rent on land , 2 716 Payments for financial assets , 28 Payments for capital 521 assets , 2 962 531 Goods and services , 7 234 234 Compensation of employees , 21 336 281 60.0% Compensation of employees Goods and services Total transfers and subsidies Payments for capital assets Economic Classifications 7 COMPENSATION OF EMPLOYEES R Thousands Actual to Outcome Projections (Over) / % (Over) Total Actual to Outcome Projections (Over) / % (Over) Adjusted Main Budget Adjusted Main Budget Total the end of as % to end of under- / underAdjustme the end of as % to end of under- / underBudget 2013/14 2014/15 Adjustments Budget Mar 2014 Budget Mar 2014 spending spending nts Mar 2015 Budget Mar 2015 spending 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% 500 387 100.0% - 1 0.0% 458 500 447 847 97.7% - 10 653 2.3% 2 774 035 (92 631) 2 681 404 2 667 200 99.5% - 14 204 0.5% SOCIAL DEVELOPMENT Non-Social Services 515 837 2 984 289 (15 449) 500 388 (156 828) 2 827 461 2 809 318 99.4% - 18 143 0.6% 457 563 937 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 CO-OPERATIVE GOVERNANCE AND TRADITIONAL AFFAIRS 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% 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 COMMUNITY SAFETY, SECURITY AND LIAISON 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% 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% (9 555) 151 243 151 197 100.0% (421 083) 21 475 683 21 336 281 99.4% - 46 139 402 149 719 (12 630) 137 089 137 085 100.0% 0.0% 0.6% 20 214 158 (236 403) 19 977 755 19 858 198 99.4% - 4 119 557 0.0% 0.6% HUMAN SETTLEMENTS TOTAL 160 798 21 896 766 8 Given the continued underspending on Compensation of employees, the Executive Council Has 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. GOODS AND SERVICES R Thousands Actual to Outcome Projections (Over) / % (Over) Total Actual to Outcome Projections (Over) / % (Over) Main Budget Total Adjusted Main Budget Adjusted the end of as % to end of under- / underAdjustme the end of as % to end of under- / under2014/15 Adjustments Budget 2013/14 Budget Mar 2015 Budget Mar 2015 spending spending nts Mar 2014 Budget Mar 2014 spending 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% 183 229 100.1% - ( 233) -0.1% SOCIAL DEVELOPMENT Non-Social Services 163 455 2 938 818 19 541 182 996 (70 687) 2 868 131 2 834 878 98.8% - 33 253 1.2% 190 099 48 337 238 436 233 942 98.1% - 4 494 1.9% 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 CO-OPERATIVE GOVERNANCE AND TRADITIONAL AFFAIRS 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% 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 98 422 92 323 93.8% - 6 099 6.2% PUBLIC WORKS, ROADS AND TRANSPORT COMMUNITY SAFETY, SECURITY AND LIAISON 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% CULTURE, SPORT AND RECREATION HUMAN SETTLEMENTS TOTAL 15 896 531 354 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% 150 935 10 334 161 269 147 167 91.3% - 14 102 8.7% 131 705 145 577 153 366 105.4% - ( 7 789) -5.4% (101) 51 090 51 089 100.0% 196 092 7 303 802 7 234 234 99.0% - 1 69 568 0.0% 1.0% 49 974 (2 222) 47 752 47 745 100.0% 6 572 347 499 666 7 072 013 7 031 528 99.4% - 7 40 485 0.0% 0.6% 51 191 7 107 710 13 872 10 Goods and services a) 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 a) Funds have been set aside in 2015/16 to improve capacity of Bid Committees. TRANSFERS AND SUBSIDIES R Thousands Actual to Outcome Projections (Over) / % (Over) Total Actual to Outcome Projections (Over) / % (Over) Main Budget Total Adjusted Main Budget Adjusted the end of as % to end of under- / underAdjustme the end of as % to end of under- / under2014/15 Adjustments Budget 2013/14 Budget Mar 2015 Budget Mar 2015 spending spending nts Mar 2014 Budget Mar 2014 spending 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% 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% 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% 37 894 174 38 068 37 819 99.3% - 249 0.7% 36 904 250 37 154 37 154 100.0% - - 0.0% 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% 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 COMMUNITY SAFETY, SECURITY AND LIAISON 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% 3 000 (14) 2 986 2 986 100.0% - - 0.0% 1 500 859 2 359 2 327 98.6% - 32 1.4% 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% 1 162 633 4 408 600 442 929 488 940 1 605 562 4 897 540 1 535 180 4 810 106 95.6% 98.2% - 70 382 87 434 4.4% 1.8% 1 128 615 4 167 573 1 867 8 688 1 130 482 4 176 261 1 019 411 4 048 573 90.2% 96.9% - 111 071 127 688 9.8% 3.1% Non-Social Services OFFICE OF THE PREMIER MPUMALANGA PROVINCIAL LEGISLATURE FINANCE CO-OPERATIVE GOVERNANCE AND TRADITIONAL AFFAIRS CULTURE, SPORT AND RECREATION HUMAN SETTLEMENTS TOTAL 12 TRANSFERS AND SUBSIDIES a) 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. PAYMENTS FOR CAPITAL ASSETS R Thousands Total Actual to Outcome Projections (Over) / % (Over) Adjusted Main Budget Adjusted Total Main Budget Adjustme the end of as % to end of under- / underBudget 2013/14 2014/15 Adjustments Budget nts Mar 2015 Budget Mar 2015 spending spending Actual to Outcome Projections (Over) / % (Over) the end of as % to end of under- / underMar 2014 Budget Mar 2014 spending spending 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% 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% Social Services SOCIAL DEVELOPMENT 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 CO-OPERATIVE GOVERNANCE AND TRADITIONAL AFFAIRS 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% Non-Social Services 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 COMMUNITY SAFETY, SECURITY AND LIAISON 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% 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% 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% 5 885 3 051 738 59 299 408 377 65 184 3 460 115 19 637 2 962 531 30.1% 85.6% - 45 547 497 584 69.9% 14.4% 22 360 2 695 602 4 891 306 644 27 251 3 002 246 14 634 2 767 764 53.7% 92.2% - 12 617 234 482 46.3% 7.8% CULTURE, SPORT AND RECREATION HUMAN SETTLEMENTS TOTAL 14 RECOMMENDATIONS The Honourable Members are requested to note the report THANK YOU ANNEXURES EDUCATION R Thousands Programme ADMINISTRATION PUBLIC ORDINARY SCHOOL EDUCATION INDEPENDENT SCHOOL SUBSIDIES PUBLIC SPECIAL SCHOOL EDUCATION FURTHER EDUCATION AND TRAINING ADULT BASIC EDUCATION AND TRAINING EARLY CHILDHOOD DEVELOPMENT INFRASTRUCTURE DEVELOPMENT TOTAL Economic classification Compensation of employees Goods and services Interest and rent on land Total transfers and subsidies Payments for capital assets Payments for financial assets Total Actual to Outcome Projections (Over) / % (Over) Total Actual to Outcome Projections (Over) / % (Over) Main Budget Total Adjusted Main Budget Adjusted the end of as % to end of under- / underAdjustme the end of as % to end of under- / under2014/15 Adjustments Budget 2013/14 Budget Mar 2015 Budget Mar 2015 spending spending nts Mar 2014 Budget Mar 2014 spending spending 1 185 818 12 926 981 18 000 219 361 243 321 146 042 192 402 907 209 16 102 831 (11 629) 57 146 (1 260) (1 364) (1 498) (1 798) (6 435) 113 824 160 534 1 174 189 1 171 649 12 984 127 12 889 750 16 740 16 342 217 997 217 189 241 823 240 672 144 244 143 472 185 967 176 901 1 021 033 780 000 16 263 365 15 909 887 99.8% 99.3% 97.6% 99.6% 99.5% 99.5% 95.1% 76.4% 97.8% - 2 540 94 377 398 808 1 151 772 9 066 241 033 353 478 0.2% 1 123 028 (50 613) 1 072 415 1 051 961 0.7% 12 148 778 71 492 12 220 270 12 145 020 2.4% 16 000 16 000 15 338 0.4% 211 847 714 212 561 200 947 0.5% 244 819 (2 583) 242 236 241 163 0.5% 138 696 (105) 138 591 137 471 4.9% 178 477 17 797 196 274 191 682 23.6% 595 755 166 108 761 863 713 732 2.2% 14 896 956 205 941 15 102 897 14 932 789 98.1% 99.4% 95.9% 94.5% 99.6% 99.2% 97.7% 93.7% 98.9% - 20 454 75 250 662 11 614 1 073 1 120 4 592 48 131 170 108 1.9% 0.6% 4.1% 5.5% 0.4% 0.8% 2.3% 6.3% 1.1% 12 733 191 1 470 212 974 991 924 437 16 102 831 (145 744) 115 659 71 520 119 099 160 534 12 587 447 1 585 871 1 046 511 1 043 536 16 263 365 99.2% 99.2% - 98 534 11 916 ( 68) 6 385 263 444 ( 26 733) 353 478 0.8% 11 939 540 0.8% 1 473 845 0.6% 873 680 25.2% 609 891 2.2% 14 896 956 99.3% 99.1% - 86 796 14 473 ( 132) 1 278 67 693 170 108 0.7% 0.9% 12 488 913 1 573 955 68 1 040 126 780 092 26 733 15 909 887 99.4% 74.8% 97.8% (98 834) 11 840 706 11 753 910 157 625 1 631 470 1 616 997 132 (6 584) 867 096 865 818 153 734 763 625 695 932 205 941 15 102 897 14 932 789 99.9% 91.1% 98.9% 0.1% 8.9% 1.1% 18 EDUCATION 2500 000 Amounts in R Thousands 2000 000 1500 000 1000 000 500 000 - April May June July August September October November December January February March Original Projections 1225 314 2033 536 1231 421 1376 938 1224 278 1314 077 1214 320 1597 194 1222 627 1233 132 1156 621 1273 373 Variable Projections 1225 314 2030 820 1656 537 1344 249 1353 320 1508 217 1421 149 1535 945 1667 075 1656 565 1823 645 1590 020 Actual Expenditure 1142 226 1655 357 1357 846 1238 332 1210 866 1401 107 1364 733 1188 480 1478 001 1169 429 1264 582 1438 928 Cash Transferred 1156 384 1620 248 1475 565 1200 000 1190 000 1516 066 1251 094 1258 250 1545 437 1062 073 1259 614 1728 634 19 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. Conclusion The 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. 21 HEALTH R Thousands Programme ADMINISTRATION DISTRICT HEALTH SERVICES EMERGENCY MEDICAL SERVICES PROVINCIAL HOSPITAL SERVICES CENTRAL HOSPITAL SERVICES HEALTH SCIENCES AND TRAINING HEALTH CARE SUPPORT SERVICES HEALTH FACILITIES MANAGEMENT TOTAL Economic Classification: Compensation of employees Goods and services Interest and rent on land Total transfers and subsidies Payments for capital assets Payments for financial assets Total Actual to Outcome Projections (Over) / % (Over) Total Actual to Outcome Projections (Over) / % (Over) Main Budget Total Adjusted Main Budget Adjusted the end of as % to end of under- / underAdjustme the end of as % to end of under- / under2014/15 Adjustments Budget 2013/14 Budget Mar 2015 Budget Mar 2015 spending spending nts Mar 2014 Budget Mar 2014 spending spending 237 154 5 310 655 319 152 1 130 564 936 128 273 049 120 146 664 762 8 991 610 (28 791) 208 363 196 542 174 951 5 485 606 5 496 197 209 319 361 319 347 (83 234) 1 047 330 1 047 266 19 412 955 540 943 975 32 176 305 225 305 208 (17 492) 102 654 101 707 (56 294) 608 468 469 050 40 937 9 032 547 8 879 292 94.3% 100.2% 100.0% 100.0% 98.8% 100.0% 99.1% 77.1% 98.3% - 11 821 ( 10 591) 14 64 11 565 17 947 139 418 153 255 5.7% 210 870 1 796 212 666 221 900 104.3% -0.2% 4 830 351 86 209 4 916 560 4 925 584 100.2% 0.0% 285 827 (33 101) 252 726 249 584 98.8% 0.0% 1 003 924 (53 568) 950 356 947 563 99.7% 1.2% 827 337 (9 851) 817 486 812 087 99.3% 0.0% 252 034 20 408 272 442 271 672 99.7% 0.9% 121 583 (11 450) 110 133 105 887 96.1% 22.9% 552 579 37 026 589 605 531 120 90.1% 1.7% 8 084 505 37 469 8 121 974 8 065 397 99.3% - ( 9 234) ( 9 024) 3 142 2 793 5 399 770 4 246 58 485 56 577 5 663 449 2 535 225 231 162 561 774 8 991 610 (103 062) 5 560 387 5 537 663 99.6% 131 579 2 666 804 2 642 172 99.1% 915 30 635 261 797 264 468 101.0% (18 215) 543 559 434 074 79.9% 40 937 9 032 547 8 879 292 98.3% - 22 724 24 632 ( 915) ( 2 671) 109 485 153 255 0.4% 0.9% - 7 904 0.2% ( 18 238) -0.8% ( 329) ( 38 460) -16.0% 105 700 16.0% 56 577 0.7% 5 043 020 2 274 128 -1.0% 200 071 20.1% 567 286 1.7% 8 084 505 (45 875) 4 997 145 4 989 241 99.8% (48 856) 2 225 272 2 243 510 100.8% 329 39 748 239 819 278 279 116.0% 92 452 659 738 554 038 84.0% 37 469 8 121 974 8 065 397 99.3% 22 -4.3% -0.2% 1.2% 0.3% 0.7% 0.3% 3.9% 9.9% 0.7% HEALTH 1600 000 1400 000 Amounts in R Thousands 1200 000 1000 000 800 000 600 000 400 000 200 000 - April May June July August September October November December January February March Original Projections 781 690 767 933 711 704 744 751 702 757 732 726 754 574 810 127 775 878 724 782 768 173 716 515 Variable Projections 781 690 793 856 748 458 795 921 949 082 1070 196 1306 507 956 620 1178 184 1127 207 1342 353 1197 880 Actual Expenditure 941 497 650 843 754 824 646 150 647 679 630 210 748 283 499 311 853 010 614 427 742 599 1150 459 Cash Transferred 844 119 719 154 750 227 667 612 642 611 709 579 671 088 797 734 825 485 649 633 783 271 972 034 23 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. 24 HEALTH 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. 25 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. 26 SOCIAL DEVELOPMENT R Thousands Programme ADMINISTRATION SOCIAL WELFARE SERVICES CHILDREN AND FAMILIES RESTORATIVE SERVICES DEVELOPMENT AND RESEARCH TOTAL Economic Classification: Compensation of employees Goods and services Interest and rent on land Total transfers and subsidies Payments for capital assets Payments for financial assets Total Actual to Outcome Projections (Over) / % (Over) Total Actual to Outcome Projections (Over) / % (Over) Main Budget Total Adjusted Main Budget Adjusted the end of as % to end of under- / underAdjustme the end of as % to end of under- / under2014/15 Adjustments Budget 2013/14 Budget Mar 2015 Budget Mar 2015 spending spending nts Mar 2014 Budget Mar 2014 spending spending 252 099 456 305 319 500 82 152 122 009 1 232 065 (1 998) (47 567) 33 936 3 824 49 (11 756) 250 101 250 097 408 738 408 738 353 436 353 435 85 976 85 976 122 058 122 057 1 220 309 1 220 303 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% - 515 837 163 455 461 135 91 638 1 232 065 (15 449) 19 541 (7 598) (8 250) (11 756) 500 388 500 387 182 996 183 229 453 537 453 208 83 388 83 479 1 220 309 1 220 303 100.0% 100.1% - 99.9% 100.1% 100.0% 4 1 1 6 0.0% 248 530 827 249 357 238 861 0.0% 781 205 12 536 793 741 767 942 0.0% 124 559 1 976 126 535 126 159 0.0% 0.0% 0.0% 1 154 294 15 339 1 169 633 1 132 962 1 0.0% 457 563 ( 233) -0.1% 190 099 329 0.1% 419 260 ( 91) -0.1% 85 517 1 855 6 0.0% 1 154 294 937 48 337 (15 703) (16 707) (1 525) 15 339 458 500 447 847 238 436 233 942 403 557 394 792 68 810 56 051 330 330 1 169 633 1 132 962 95.8% 96.7% 99.7% 96.9% 97.7% 98.1% 97.8% 81.5% 100.0% 96.9% - 10 496 25 799 376 36 671 4.2% 3.3% 0.3% - 10 653 4 494 8 765 12 759 36 671 2.3% 1.9% 3.1% 2.2% 18.5% 0.0% 3.1% 27 SOCIAL DEVELOPMENT 160 000 140 000 Amounts in R Thousands 120 000 100 000 80 000 60 000 40 000 20 000 - April May June July August September October November December January February March Original Projections 64 133 149 012 103 255 121 487 109 249 96 921 112 066 114 742 66 555 116 117 106 343 72 185 Variable Projections 64 133 148 841 116 076 123 425 114 919 112 568 136 947 121 891 81 725 119 532 112 970 88 486 Actual Expenditure 59 897 117 916 85 647 123 830 88 781 90 324 127 357 137 292 83 845 91 359 135 725 78 330 Cash Transferred 64 133 121 000 108 012 95 000 105 000 85 000 126 910 150 800 84 275 110 361 103 645 66 173 28 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. OFFICE OF THE PREMIER R Thousands Programme ADMINISTRATION INSTITUTIONAL DEVELOPMENT POLICY AND GOVERNANCE TOTAL Economic Classification: Compensation of employees Goods and services Interest and rent on land Total transfers and subsidies Payments for capital assets Payments for financial assets Total Actual to Outcome Projections (Over) / % (Over) Total Actual to Outcome Projections (Over) / % (Over) Main Budget Total Adjusted Main Budget Adjusted the end of as % to end of under- / underAdjustme the end of as % to end of under- / under2014/15 Adjustments Budget 2013/14 Budget Mar 2015 Budget Mar 2015 spending spending nts Mar 2014 Budget Mar 2014 spending spending 83 618 74 044 47 710 205 372 15 962 99 580 644 74 688 (5 158) 42 552 11 448 216 820 98 398 74 257 38 240 210 895 98.8% 99.4% 89.9% 97.3% - 1 182 431 4 312 5 925 1.2% 0.6% 10.1% 2.7% 74 690 73 975 51 827 200 492 92 874 167 564 (5 019) 68 956 (9 920) 41 907 77 935 278 427 167 418 68 784 41 441 277 643 99.9% 99.8% 98.9% 99.7% - 146 172 466 784 0.1% 0.2% 1.1% 0.3% 125 359 71 830 4 156 4 027 205 372 (6 732) 118 627 16 878 88 708 3 719 7 875 (2 417) 1 610 11 448 216 820 118 236 84 032 7 825 802 210 895 99.7% 94.7% - 391 4 676 50 808 5 925 0.3% 5.3% 116 319 (5 355) 110 964 74 473 79 289 153 762 3 750 302 4 052 5 950 3 699 9 649 200 492 77 935 278 427 110 959 153 279 4 051 9 354 277 643 100.0% 99.7% - 5 483 1 295 784 0.0% 0.3% 99.4% 49.8% 97.3% 0.6% 50.2% 2.7% 100.0% 96.9% 99.7% 30 0.0% 3.1% 0.3% OFFICE OF THE PREMIER 40 000 35 000 Amounts in R Thousands 30 000 25 000 20 000 15 000 10 000 5 000 - April May June July August September October November December January February March Original Projections 13 951 14 716 22 668 20 821 15 373 22 464 20 627 14 602 14 022 15 130 16 664 14 334 Variable Projections 13 951 17 514 22 724 22 796 23 146 25 834 32 376 26 147 25 319 23 763 32 096 34 095 Actual Expenditure 11 592 21 751 21 578 17 448 14 911 13 606 15 583 18 408 24 280 9 919 13 645 28 174 Cash Transferred 16 114 23 057 20 614 18 114 17 114 17 114 17 114 17 114 19 114 17 114 17 114 17 123 31 OFFICE OF THE PREMIER 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. MPUMALANGA PROVINCIAL LEGISLATURE R Thousands Programme ADMINISTRATION PARLIAMENTARY BUSINESS TOTAL Economic Classification: Compensation of employees Goods and services Interest and rent on land Total transfers and subsidies Payments for capital assets Payments for financial assets Total Actual to Outcome Projections (Over) / % (Over) Total Actual to Outcome Projections (Over) / % (Over) Main Budget Total Adjusted Main Budget Adjusted the end of as % to end of under- / underAdjustme the end of as % to end of under- / under2014/15 Adjustments Budget 2013/14 Budget Mar 2015 Budget Mar 2015 spending spending nts Mar 2014 Budget Mar 2014 spending spending 116 245 157 243 273 488 19 090 135 335 133 133 98.4% (1 457) 155 786 155 537 99.8% 17 633 291 121 288 670 99.2% - 132 029 98 706 37 894 4 859 273 488 (16 121) 115 908 115 908 22 307 121 013 130 287 174 38 068 37 819 11 273 16 132 4 656 17 633 291 121 288 670 - 0.0% - ( 9 274) -7.7% - 249 0.7% - 11 476 71.1% - 2 451 0.8% 100.0% 107.7% 99.3% 28.9% 99.2% 2 202 249 2 451 1.6% 0.2% 0.8% 104 366 6 790 111 156 111 120 100.0% 139 068 1 181 140 249 139 757 99.6% 243 434 7 971 251 405 250 877 99.8% - 112 440 86 923 36 904 7 167 243 434 - 474 0.5% - ( 1 835) -1.7% - 0.0% - 1 889 61.6% - 528 0.2% (10 350) 102 090 101 616 22 170 109 093 110 928 250 37 154 37 154 (4 099) 3 068 1 179 7 971 251 405 250 877 99.5% 101.7% 100.0% 38.4% 99.8% 36 492 528 0.0% 0.4% 0.2% 33 PROVINCIAL LEGISLATURE 40 000 35 000 Amounts in R Thousands 30 000 25 000 20 000 15 000 10 000 5 000 - April May June July August September October November December January February March Original Projections 27 922 17 788 31 379 19 047 17 833 29 700 18 141 17 030 24 735 15 405 26 272 28 236 Variable Projections 27 922 17 788 37 666 30 428 22 211 30 623 25 560 17 030 24 096 20 483 28 658 29 882 Actual Expenditure 23 999 20 511 24 110 28 869 22 687 22 601 26 677 23 952 29 071 15 990 22 772 27 431 Cash Transferred 27 922 17 788 31 379 34 047 17 833 29 700 19 653 18 543 33 450 31 263 19 332 10 211 34 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. FINANCE R Thousands Programme ADMINISTRATION SUSTAINABLE RESOURCE MANAGEMENT ASSET AND LIABILITIES MANAGEMENT FINANCIAL GOVERNANCE TOTAL Economic Classification: Compensation of employees Goods and services Interest and rent on land Total transfers and subsidies Payments for capital assets Payments for financial assets Total Actual to Outcome Projections (Over) / % (Over) Total Actual to Outcome Projections (Over) / % (Over) Main Budget Total Adjusted Main Budget Adjusted the end of as % to end of under- / underAdjustme the end of as % to end of under- / under2014/15 Adjustments Budget 2013/14 Budget Mar 2015 Budget Mar 2015 spending spending nts Mar 2014 Budget Mar 2014 spending spending 79 919 46 946 113 790 27 514 268 169 (2 875) (2 116) 1 258 7 588 3 855 77 044 44 830 115 048 35 102 272 024 76 153 44 378 112 136 32 086 264 753 98.8% 99.0% 97.5% 91.4% 97.3% - 891 452 2 912 3 016 7 271 1.2% 1.0% 2.5% 8.6% 2.7% 76 490 (1 713) 45 116 (222) 110 404 (4 052) 34 858 (5 876) 266 868 (11 863) 74 777 44 894 106 352 28 982 255 005 73 704 44 489 106 036 27 523 251 752 98.6% 99.1% 99.7% 95.0% 98.7% - 1 073 405 316 1 459 3 253 1.4% 0.9% 0.3% 5.0% 1.3% 154 436 105 797 3 509 4 427 268 169 (12 545) 13 198 3 208 (10) 4 3 855 141 891 118 995 6 717 4 417 4 272 024 140 690 99.2% 114 343 96.1% 6 646 98.9% 3 070 69.5% 4 100.0% 264 753 97.3% - 1 201 4 652 71 1 347 7 271 0.8% 3.9% 144 383 (8 416) 118 691 (8 584) 184 3 686 3 610 1 451 266 868 (11 863) 135 967 110 107 3 870 5 061 255 005 135 842 107 174 3 860 4 876 251 752 99.9% 97.3% - 125 2 933 10 185 3 253 0.1% 2.7% 1.1% 30.5% 0.0% 2.7% 99.7% 96.3% 98.7% 0.3% 3.7% 1.3% 36 FINANCE 40 000 35 000 Amounts in R Thousands 30 000 25 000 20 000 15 000 10 000 5 000 - April May June July August September October November December January February March Original Projections 20 493 24 517 20 858 25 653 22 085 22 318 22 024 23 577 21 446 22 773 21 538 20 887 Variable Projections 20 493 32 519 26 871 26 839 27 505 29 196 22 315 23 697 28 478 25 597 27 528 33 778 Actual Expenditure 12 485 16 202 24 624 29 781 20 955 24 881 24 130 17 399 21 365 22 221 19 866 30 844 Cash Transferred 19 483 14 000 21 000 34 988 22 085 22 318 20 974 22 577 26 650 20 650 26 344 20 955 37 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. CO-OPERATIVE GOVERNANCE AND TRADITIONAL AFFAIRS Actual to Outcome Projections (Over) / % (Over) Total Actual to Outcome Projections (Over) / % (Over) Main Budget Total Adjusted Main Budget Adjusted the end of as % to end of under- / underAdjustme the end of as % to end of under- / under2014/15 Adjustments Budget 2013/14 Budget Mar 2015 Budget Mar 2015 spending spending nts Mar 2014 Budget Mar 2014 spending spending R Thousands Programme ADMINISTRATION LOCAL GOVERNANCE DEVELOPMENT AND PLANNING TRADITIONAL INSTITUTIONAL MANAGEMENT THE HOUSE OF TRADITIONAL LEADERS TOTAL Economic Classification: Compensation of employees Goods and services Interest and rent on land Total transfers and subsidies Payments for capital assets Payments for financial assets Total 102 876 141 010 60 262 101 283 13 361 418 792 (198) 11 837 42 684 (9 821) 1 793 46 295 102 678 152 847 102 946 91 462 15 154 465 087 102 545 99.9% 152 839 100.0% 99 448 96.6% 91 224 99.7% 15 025 99.1% 461 081 99.1% - 133 8 3 498 238 129 4 006 0.1% 0.0% 3.4% 0.3% 0.9% 0.9% 96 183 8 459 135 212 9 052 108 811 (37 757) 73 540 17 503 12 162 2 544 425 908 (199) 104 642 144 264 71 054 91 043 14 706 425 709 101 218 142 502 52 109 89 678 13 852 399 359 96.7% 98.8% 73.3% 98.5% 94.2% 93.8% - 3 424 1 762 18 945 1 365 854 26 350 3.3% 1.2% 26.7% 1.5% 5.8% 6.2% 325 011 70 085 22 078 1 618 418 792 (1 352) 11 488 977 35 182 46 295 323 659 81 573 23 055 36 800 465 087 323 635 100.0% 82 288 100.9% 22 815 99.0% 32 343 87.9% 461 081 99.1% - 24 ( 715) 240 4 457 4 006 0.0% -0.9% 274 376 27 122 74 502 (2 810) 11 197 2 600 65 833 (27 111) 425 908 (199) 301 498 71 692 13 797 38 722 425 709 297 679 64 948 13 469 23 088 175 399 359 98.7% 90.6% - 3 819 6 744 328 15 634 ( 175) 26 350 1.3% 9.4% 1.0% 12.1% 0.9% 97.6% 59.6% 93.8% 2.4% 40.4% 6.2% 39 CO-OPERATIVE GOVERNANCE AND TRADITIONAL AFFAIRS 60 000 Amounts in R Thousands 50 000 40 000 30 000 20 000 10 000 - April May June July August September October November December January February March Original Projections 32 151 34 272 38 984 34 663 35 588 33 476 34 837 33 553 33 036 34 118 36 256 37 858 Variable Projections 32 151 35 628 36 856 40 912 41 364 41 979 42 087 39 903 36 599 50 234 51 552 56 585 Actual Expenditure 29 257 36 625 36 632 37 123 47 924 39 884 35 015 39 724 31 181 32 158 42 979 52 579 Cash Transferred 32 151 34 272 42 984 35 663 47 585 48 737 41 837 36 553 39 036 30 718 23 256 52 295 40 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. AGRICULTURE, RURAL DEVELOPMENT, LAND AND ENVIRONMENTAL AFFAIRS Actual to Outcome Projections (Over) / % (Over) Total Actual to Outcome Projections (Over) / % (Over) Main Budget Total Adjusted Main Budget Adjusted the end of as % to end of under- / underAdjustme the end of as % to end of under- / under2014/15 Adjustments Budget 2013/14 Budget Mar 2015 Budget Mar 2015 spending spending nts Mar 2014 Budget Mar 2014 spending spending R Thousands Programme ADMINISTRATION 135 299 SUSTAINABLE RESOURCE MANAGEMENT 62 473 FARMER SUPPORT AND DEVELOPMENT 449 956 VETERINARY SERVICES 114 541 RESEARCH AND TECHNOLOGY DEVELOPMENT SERVICES 47 900 AGRICULTURAL ECONOMICS SERVICES 42 762 STRUCTURED AGRICULTURAL EDUCATION AND TRAINING 71 365 RURAL DEVELOPMENT COORDINATION 147 108 ENVIRONMENTAL AFFAIRS TOTAL 1 071 404 Economic Classification: Compensation of employees 487 148 Goods and services 233 277 Interest and rent on land Total transfers and subsidies 299 139 Payments for capital assets 51 840 Payments for financial assets Total 1 071 404 (16 943) 9 858 78 814 (9 868) (4 648) (24 710) (16 608) (125 591) 73 710 (35 986) 118 356 116 508 72 331 71 635 528 770 513 014 104 673 103 850 43 252 41 958 18 052 15 458 54 757 51 536 21 517 21 047 73 710 69 438 1 035 418 1 004 444 98.4% 99.0% 97.0% 99.2% 97.0% 85.6% 94.1% 97.8% 94.2% 97.0% - 1 848 696 15 756 823 1 294 2 594 3 221 470 4 272 30 974 1.6% 129 806 (7 213) 122 593 1.0% 57 740 3 850 61 590 3.0% 491 536 (28 272) 463 264 0.8% 107 100 (2 500) 104 600 3.0% 37 062 500 37 562 14.4% 54 302 (669) 53 633 5.9% 63 555 9 528 73 083 2.2% 86 502 (6 822) 79 680 5.8% 22 442 (5 050) 17 392 3.0% 1 050 045 (36 648) 1 013 397 118 406 59 267 417 486 98 089 36 601 47 233 71 291 63 758 16 164 928 295 96.6% 96.2% 90.1% 93.8% 97.4% 88.1% 97.5% 80.0% 92.9% 91.6% - 4 187 2 323 45 778 6 511 961 6 400 1 792 15 922 1 228 85 102 3.4% 3.8% 9.9% 6.2% 2.6% 11.9% 2.5% 20.0% 7.1% 8.4% 25 471 (35 336) (56 625) 30 504 (35 986) 512 619 498 615 197 941 195 639 242 514 230 798 82 344 78 705 687 1 035 418 1 004 444 97.3% 98.8% - 14 004 2 302 11 716 3 639 ( 687) 30 974 2.7% 1.2% 453 359 192 907 224 523 57 386 120 928 295 98.2% 87.4% - 8 089 27 792 45 723 3 618 ( 120) 85 102 1.8% 12.6% 95.2% 95.6% 97.0% 452 892 236 996 4.8% 324 392 4.4% 32 935 2 830 3.0% 1 050 045 8 556 461 448 (16 297) 220 699 (54 146) 270 246 28 069 61 004 (2 830) (36 648) 1 013 397 83.1% 94.1% 91.6% 16.9% 5.9% 8.4% 42 AGRICULTURE, RURAL DEVELOPMENT AND LAND ADMINISTRATION 300 000 Amounts in R Thousands 250 000 200 000 150 000 100 000 50 000 - April May June July August September Original Projections 63 975 86 592 96 704 Variable Projections 63 975 86 592 99 190 93 935 96 908 127 510 99 258 117 128 152 586 Actual Expenditure 42 585 56 363 Cash Transferred 52 842 52 000 50 751 57 139 54 359 58 195 63 000 55 000 45 000 53 500 October November December January February March 92 545 93 275 125 576 74 665 65 166 54 553 127 471 129 098 149 359 243 804 268 613 200 627 58 716 104 921 101 426 86 039 122 481 211 469 59 354 110 631 92 595 90 180 130 112 204 295 43 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. DEPARTMENT OF AGRICULTURE, RURAL DEVELOPMENT LAND AND ENVIRONMENTAL AFFAIRS 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. ECONOMIC DEVELOPMENT AND TOURISM R Thousands Programme ADMINISTRATION INTEGRATED ECONOMIC DEVELOPMENT TRADE AND SECTOR DEVELOPMENT BUSINESS REGULATION AND GOVERNANCE ECONOMIC PLANNING ENVIRONMENTAL SERVICES TOURISM TOTAL Economic Classification: Compensation of employees Goods and services Interest and rent on land Total transfers and subsidies Payments for capital assets Payments for financial assets Total Actual to Outcome Projections (Over) / % (Over) Total Actual to Outcome Projections (Over) / % (Over) Main Budget Total Adjusted Main Budget Adjusted the end of as % to end of under- / underAdjustme the end of as % to end of under- / under2014/15 Adjustments Budget 2013/14 Budget Mar 2015 Budget Mar 2015 spending spending nts Mar 2014 Budget Mar 2014 spending spending 89 774 242 956 17 711 82 495 14 989 81 208 332 639 861 772 (1 927) (11 842) (2 725) 634 (600) (81 208) 189 (97 479) 87 847 231 114 14 986 83 129 14 389 332 828 764 293 86 419 98.4% 231 114 100.0% 14 912 99.5% 82 400 99.1% 13 362 92.9% 332 828 100.0% 761 035 99.6% - 1 428 74 729 1 027 3 258 1.6% 0.0% 0.5% 0.9% 7.1% 178 989 106 861 556 046 14 876 5 000 861 772 (68 432) (14 504) 100 (9 643) (5 000) (97 479) 110 557 92 357 556 146 5 233 764 293 109 953 99.5% 89 214 96.6% 556 540 100.1% 5 328 101.8% 761 035 99.6% - 604 3 143 ( 394) ( 95) 3 258 0.5% 3.4% 0.0% 0.4% -0.1% -1.8% 0.4% 84 236 8 105 196 866 (3 080) 17 720 18 497 75 817 3 958 9 833 (1 354) 110 375 (14 924) 326 720 (660) 821 567 10 542 92 341 193 786 36 217 79 775 8 479 95 451 326 060 832 109 88 434 95.8% 196 990 101.7% 35 461 97.9% 80 979 101.5% 8 344 98.4% 94 969 99.5% 325 863 99.9% 831 040 99.9% - 3 907 ( 3 204) 756 ( 1 204) 135 482 197 1 069 4.2% -1.7% 2.1% -1.5% 1.6% 0.5% 0.1% 0.1% 169 201 (4 854) 82 526 15 896 550 740 20 000 14 100 (10 500) 5 000 (10 000) 821 567 10 542 164 347 98 422 570 740 3 600 (5 000) 832 109 163 896 99.7% 92 323 93.8% 572 525 100.3% 2 277 63.3% 19 -0.4% 831 040 99.9% - 451 0.3% 6 099 6.2% ( 1 785) -0.3% 1 323 36.8% ( 5 019) 100.4% 1 069 0.1% 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. 46 ECONOMIC DEVELOPMENT, ENVIRONMENT AND TOURISM 140 000 120 000 Amounts in R Thousands 100 000 80 000 60 000 40 000 20 000 - (20 000) April May June July August September Original Projections 71 294 71 429 Variable Projections 71 294 94 935 Actual Expenditure 63 467 Cash Transferred 64 720 October November December January February March 71 416 76 434 71 359 62 650 115 556 67 511 71 487 71 380 71 419 71 307 71 434 71 397 71 416 67 408 104 019 89 862 63 179 52 311 39 122 86 913 57 982 102 397 58 623 57 311 54 129 70 314 72 770 49 964 55 989 34 693 98 035 55 999 101 424 55 106 46 155 58 532 94 690 60 290 40 062 97 433 51 753 (4 800) 47 PUBLIC WORKS, ROADS AND TRANSPORT R Thousands Programme ADMINISTRATION PUBLIC WORKS INFRASTRUCTURE TRANSPORT INFRASTRUCTURE TRANSPORT OPERATIONS COMMUNITY BASED PROGRAMMES TOTAL Economic Classification: Compensation of employees Goods and services Interest and rent on land Total transfers and subsidies Payments for capital assets Payments for financial assets Total Actual to Outcome Projections (Over) / % (Over) Total Actual to Outcome Projections (Over) / % (Over) Main Budget Total Adjusted Main Budget Adjusted the end of as % to end of under- / underAdjustme the end of as % to end of under- / under2014/15 Adjustments Budget 2013/14 Budget Mar 2015 Budget Mar 2015 spending spending nts Mar 2014 Budget Mar 2014 spending spending 238 324 633 057 2 196 807 1 071 622 53 827 4 193 637 (10 918) 227 406 (42 437) 590 620 173 057 2 369 864 (77 288) 994 334 5 540 59 367 47 954 4 241 591 227 405 590 618 2 369 864 993 908 59 366 4 241 161 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% - 1 2 426 1 430 893 403 1 518 782 642 247 1 139 205 4 193 637 (54 182) 839 221 (108 596) 1 410 186 1 154 643 401 208 487 1 347 692 1 091 1 091 47 954 4 241 591 839 217 100.0% 1 408 376 99.9% 642 975 99.9% 1 349 502 100.1% 1 091 100.0% 4 241 161 100.0% - 4 1 810 426 ( 1 810) 430 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 225 687 567 870 2 107 763 1 010 240 59 512 3 971 072 (5 146) 220 541 24 651 592 521 (58 632) 2 049 131 7 607 1 017 847 8 658 68 170 (22 862) 3 948 210 220 541 592 521 2 048 655 1 017 847 67 600 3 947 164 100.0% 100.0% 100.0% 100.0% 99.2% 100.0% - 476 570 1 046 0.0% 0.0% 0.0% 0.0% 0.8% 0.0% 0.0% 0.1% 863 158 1 317 634 605 680 1 184 600 3 971 072 (58 323) 804 835 (32 880) 1 284 754 16 009 621 689 50 542 1 235 142 1 790 1 790 (22 862) 3 948 210 804 835 1 283 708 621 689 1 235 142 1 790 3 947 164 100.0% 99.9% - 1 046 1 046 0.0% 0.1% 0.1% -0.1% 0.0% 0.0% 100.0% 100.0% 100.0% 100.0% 0.0% 0.0% 0.0% 0.0% 48 PUBLIC WORKS, ROADS AND TRANSPORT 700 000 600 000 Amounts in R Thousands 500 000 400 000 300 000 200 000 100 000 - April May June July August September October November December January February March Original Projections 243 082 355 815 296 339 344 937 321 976 424 662 386 172 383 070 352 121 335 599 369 847 380 017 Variable Projections 243 082 355 815 286 439 338 098 442 890 450 095 420 305 460 510 406 508 429 090 442 042 573 764 Actual Expenditure 110 253 551 533 347 558 370 907 229 061 499 692 397 577 310 856 431 168 319 451 283 401 389 704 Cash Transferred 304 641 292 100 400 671 361 675 237 615 530 534 407 650 330 490 434 739 209 971 392 780 338 725 49 COMMUNITY SAFETY, SECURITY AND LIAISON Actual to Outcome Projections (Over) / % (Over) Total Actual to Outcome Projections (Over) / % (Over) Main Budget Total Adjusted Main Budget Adjusted the end of as % to end of under- / underAdjustme the end of as % to end of under- / under2014/15 Adjustments Budget 2013/14 Budget Mar 2015 Budget Mar 2015 spending spending nts Mar 2014 Budget Mar 2014 spending spending R Thousands Programme ADMINISTRATION 115 543 (2 210) 113 333 CIVIL OVERSIGHT 12 349 (1 830) 10 519 CRIME PREVENTION AND COMMUNITY POLICE RELATIONS 44 341 (12 091) 32 250 TRANSPORT REGULATION 435 761 12 876 448 637 SECURITY MANAGEMENT 419 965 (5 699) 414 266 TOTAL 1 027 959 (8 954) 1 019 005 Economic Classification: Compensation of employees 376 940 (10 085) 366 855 Goods and services 531 354 13 645 544 999 Interest and rent on land Total transfers and subsidies 3 000 (14) 2 986 Payments for capital assets 116 665 (12 500) 104 165 Payments for financial assets Total 1 027 959 (8 954) 1 019 005 112 561 99.3% 10 503 99.8% 32 241 100.0% 395 101 88.1% 414 256 100.0% 964 662 94.7% - 772 16 9 53 536 10 54 343 0.7% 0.2% 0.0% 11.9% 0.0% 5.3% 108 329 15 568 123 897 123 900 10 705 (735) 9 970 9 924 41 360 (8 085) 33 275 33 022 323 633 2 609 326 242 325 631 357 721 253 443 611 164 606 706 841 748 262 800 1 104 548 1 099 183 100.0% 99.5% 99.2% 99.8% 99.3% 99.5% - ( 3) 46 253 611 4 458 5 365 -0.0% 0.5% 0.8% 0.2% 0.7% 0.5% 366 680 532 443 33 2 986 62 520 964 662 - 175 12 556 ( 33) 41 645 54 343 0.0% 2.3% 349 007 (12 185) 336 822 336 396 460 851 274 126 734 977 730 701 1 500 859 2 359 2 327 30 390 30 390 29 759 841 748 262 800 1 104 548 1 099 183 99.9% 99.4% - 426 4 276 32 631 5 365 0.1% 0.6% 100.0% 97.7% 100.0% 60.0% 94.7% 0.0% 40.0% 5.3% 98.6% 97.9% 99.5% 1.4% 2.1% 0.5% 50 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 COMMUNITY SAFETY, SECURITY AND LIASON 160 000 140 000 Amounts in R Thousands 120 000 100 000 80 000 60 000 40 000 20 000 - April May June July August September October November December January February March Original Projections 96 858 77 942 95 667 82 104 102 435 105 563 77 403 73 606 88 261 69 073 91 534 67 513 Variable Projections 96 858 77 742 95 667 82 004 102 419 105 082 91 891 99 295 106 050 114 526 109 710 148 616 Actual Expenditure 105 970 80 389 75 937 83 109 68 382 82 899 79 604 86 975 114 280 94 689 73 078 19 350 Cash Transferred 96 858 77 297 95 667 82 104 130 000 90 000 90 000 91 505 90 000 97 121 65 000 13 453 52 Community Safety, Security and Liaison a) b) c) d) Overall the department’s overall underspending is higher than the accepted threshold of 2 per cent. 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. R40 million was shifted from this department during adjustment when it was realized that spending was very slow. Only R12.8 million has been requested as rollover for capital (R11.6 million) and goods and services. CULTURE, SPORT AND RECREATION R Thousands Programme ADMINISTRATION CULTURAL AFFAIRS LIBRARY AND ARCHIVES SERVICES SPORT AND RECREATION TOTAL Economic Classification: Compensation of employees Goods and services Interest and rent on land Total transfers and subsidies Payments for capital assets Payments for financial assets Total Actual to Outcome Projections (Over) / % (Over) Total Actual to Outcome Projections (Over) / % (Over) Main Budget Total Adjusted Main Budget Adjusted the end of as % to end of under- / underAdjustme the end of as % to end of under- / under2014/15 Adjustments Budget 2013/14 Budget Mar 2015 Budget Mar 2015 spending spending nts Mar 2014 Budget Mar 2014 spending spending 82 284 98 728 161 964 99 232 442 208 (1 076) 81 208 23 450 122 178 5 784 167 748 (26 790) 72 442 1 368 443 576 80 184 120 617 143 810 66 492 411 103 98.7% 98.7% 85.7% 91.8% 92.7% - 1 024 1 561 23 938 5 950 32 473 1.3% 1.3% 14.3% 8.2% 7.3% 82 812 (3 309) 79 684 7 923 108 279 15 267 81 033 7 818 351 808 27 699 79 503 87 607 123 546 88 851 379 507 78 606 87 441 120 141 87 434 373 622 98.9% 99.8% 97.2% 98.4% 98.4% - 897 166 3 405 1 417 5 885 1.1% 0.2% 2.8% 1.6% 1.6% 150 176 150 935 10 610 130 487 442 208 (3 295) 10 334 (1 239) (4 432) 1 368 145 187 147 167 1 700 8 720 108 323 6 411 103 98.8% 91.3% - 1 694 14 102 ( 1 700) 651 17 732 ( 6) 32 473 1.2% 8.7% 142 540 131 705 11 600 65 963 351 808 126 344 145 577 11 400 96 186 379 507 125 533 153 366 10 675 84 048 373 622 99.4% 105.4% - 811 ( 7 789) 725 12 138 5 885 0.6% -5.4% 146 881 161 269 9 371 126 055 443 576 93.1% 85.9% 92.7% 6.9% 14.1% 7.3% (16 196) 13 872 (200) 30 223 27 699 93.6% 87.4% 98.4% 6.4% 12.6% 1.6% 54 CULTURE, SPORTS & RECREATION 100 000 90 000 80 000 Amounts in R Thousands 70 000 60 000 50 000 40 000 30 000 20 000 10 000 - April May June July August September October November December January February March Original Projections 34 838 37 192 35 982 39 065 38 264 38 444 38 289 37 173 34 585 34 735 35 897 37 744 Variable Projections 34 838 39 769 42 037 41 655 35 221 39 337 41 030 42 118 57 284 50 853 62 067 87 552 Actual Expenditure 15 530 25 544 34 995 47 832 23 863 30 743 29 820 25 305 51 941 35 862 27 626 62 042 Cash Transferred 22 974 24 000 37 974 38 121 33 891 33 278 33 078 19 278 51 669 29 388 33 374 86 551 55 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 Services a) 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 underspending. 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 a) At 93.1 %, the spending is below threshold for the year but on par with the spending for the 2013/14 financial year. b) The non-compliance by NPOs continues to affect the spending under this classification. c) 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. 56 CULTURE, SPORT AND RECREATION Payments 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 Grants a) 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. b) 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. 57 HUMAN SETTLEMENTS Actual to Outcome Projections (Over) / % (Over) Total Actual to Outcome Projections (Over) / % (Over) Main Budget Total Adjusted Main Budget Adjusted the end of as % to end of under- / underAdjustme the end of as % to end of under- / under2014/15 Adjustments Budget 2013/14 Budget Mar 2015 Budget Mar 2015 spending spending nts Mar 2014 Budget Mar 2014 spending spending R Thousands Programme ADMINISTRATION HOUSING NEEDS, RESEARCH AND PLANNING HOUSING DEVELOPMENT HOUSING ASSET MANAGEMENT TOTAL Economic Classification: Compensation of employees Goods and services Interest and rent on land Total transfers and subsidies Payments for capital assets Payments for financial assets Total 123 201 53 382 1 200 273 3 651 1 380 507 262 274 798 217 512 492 572 123 463 123 417 328 180 319 432 1 417 785 1 310 603 3 651 3 651 1 873 079 1 757 103 100.0% 97.3% 92.4% 100.0% 93.8% 46 - 8 748 - 107 182 - 115 976 0.0% 99 080 2.7% 60 833 7.6% 1 186 494 0.0% 4 261 6.2% 1 350 668 160 798 51 191 1 162 633 5 885 1 380 507 (9 555) 151 243 151 197 (101) 51 090 51 089 442 929 1 605 562 1 535 180 59 299 65 184 19 637 492 572 1 873 079 1 757 103 100.0% 100.0% 46 1 - 70 382 - 45 547 - 115 976 0.0% 0.0% 95.6% 30.1% 93.8% 12 679 111 759 110 515 (8 983) 51 850 40 527 (11 670) 1 174 824 1 063 692 4 261 4 261 (7 974) 1 342 694 1 218 995 98.9% 78.2% 90.5% 100.0% 90.8% - 1 244 - 11 323 - 111 132 - 123 699 1.1% 21.8% 9.5% 0.0% 9.2% 149 719 (12 630) 137 089 137 085 49 974 (2 222) 47 752 47 745 4.4% 1 128 615 1 867 1 130 482 1 019 411 69.9% 22 360 4 891 27 251 14 634 120 120 120 6.2% 1 350 668 (7 974) 1 342 694 1 218 995 100.0% 100.0% 4 7 - 111 071 - 12 617 - 123 699 0.0% 0.0% 90.2% 53.7% 100.0% 90.8% 9.8% 46.3% 0.0% 9.2% 58 HUMAN SETTLEMENTS 500 000 400 000 Amounts in R Thousands 300 000 200 000 100 000 - (100 000) (200 000) (300 000) April May June July August September October November December January February March Original Projections 94 252 100 720 105 162 124 567 130 719 135 163 124 249 105 725 145 792 104 120 114 412 95 626 Variable Projections 94 252 106 107 108 915 125 369 132 634 155 256 138 893 111 692 149 949 98 200 361 223 198 975 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 Cash Transferred 55 044 99 485 145 603 105 044 115 044 165 044 130 044 216 320 165 044 19 987 453 603 202 817 59 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. MPUMALANGA CONDITIONAL GRANTS EXPENDITURE AS AT 31 MARCH 2015 Grant Name Total - National National Allocation Additional A B R'000 R'000 Provincial roll overs C R'000 Total Adjusted Budget D R'000 Spent by Department Projections (Over) / Transfers from Received by as at 31 Mar to end of Mar underNational Department 2015 2015 spending E F G H I R'000 R'000 R'000 R'000 R'000 Cash available less Actual spending G-F J R'000 Expenditure % as % Expenditure Budget to Transfers (G/D) (G/F) K L % % 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% 46 062 - - 46 062 46 062 46 062 45 884 - 178 178 100% 100% 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, 11 274 Land And - Environmental - Affairs 11 274 11 274 11 274 10 073 - 1 201 1 201 89% 89% Provincial Disaster Grant Culture, Sport and Recreation - 14 700 - 14 700 14 700 14 700 14 695 - 5 5 100% 100% 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 Expanded Public Works Programme Integrated Grant for Provinces - Culture, Sport And Recreation 2 199 Social Sector Expanded Public Works Programme Incentive Grant for Provinces - Culture, Sport 2 580And Recreation Education - 46 959 2 199 2 580 46 959 2 199 2 580 46 959 2 199 2 580 45 233 2 451 2 258 - 1 726 (252) 322 1 726 (252) 322 96% 111% 88% 96% 111% 88% Dinaledi Schools Grant Ilima/Letsema Projects Grant Land Care Programme Grant: Poverty Relief and Infrastructure Development 10 228 - - 10 228 10 228 10 228 6 477 - 3 751 3 751 63% 63% 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% Education Infrastructure Grant Technical Secondary Schools Recapitalisation Grant 28 682 - - 28 682 28 682 28 682 21 474 - 7 208 7 208 75% 75% 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 - Education 6 312 Cooperative Governance and Traditional Affairs - - 6 312 6 312 6 312 5 889 - 423 423 93% 93% - 2 000 2 000 2 000 1 999 - 1 1 100% 100% Further Education and Training Colleges Grant Expanded Public Works Programme Integrated Grant for Provinces - Co-Operative Governance 2 000And Traditional - Affairs 61 MPUMALANGA CONDITIONAL GRANTS EXPENDITURE AS AT 31 MARCH 2015 Grant Name Total - National National Allocation Additional A B R'000 R'000 Provincial roll overs C R'000 Total Adjusted Budget D R'000 Spent by Department Projections (Over) / Transfers from Received by as at 31 Mar to end of Mar underNational Department 2015 2015 spending E F G H I R'000 R'000 R'000 R'000 R'000 Cash available less Actual spending G-F J R'000 Expenditure % as % Expenditure Budget to Transfers (G/D) (G/F) K L % % Health Comprehensive HIV and Aids Grant 818 836 - - 818 836 818 836 818 836 818 839 - (3) (3) Health Facility Revitalisation Grant 343 509 - - 343 509 343 509 343 509 271 516 - 71 993 71 993 79% 79% 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 Human Settlements 3 384 - - 3 384 3 384 3 384 3 384 - - - 100% 100% National Professions Training and Development Grant 100% 100% Human Settlements Development Grant Public Works, Roads and Transport 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% Provincial Roads Maintenance Grant 1 594 840 - - 1 594 840 1 594 840 1 594 840 1 594 839 - 1 1 100% 100% 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 12 798 Transport - - 12 798 12 798 12 798 12 795 - 3 3 100% 100% Provincial Disaster Grant Community Safety, Security and Liason - 35 750 35 750 35 750 35 749 - 1 1 100% 100% Social Sector Expanded Public Works Programme Incentive Grant for Provinces - Community2 Safety, 580 Security- And Liaison Social Development 2 580 2 580 2 580 2 580 - - - 100% 100% Expanded Public Works Programme Integrated Grant for Provinces - Social Development 2 024 Public Transport Operations Grant - 35 750 - - 2 024 2 024 2 024 2 133 - (109) (109) 105% 105% Social Sector Expanded Public Works Programme Incentive Grant for Provinces - Social Development 3 988 Economic Development, Environment and Tourism Expanded Public Works Programme Integrated Grant for Provinces - Economic Development3And 561 Tourism - - 3 988 3 988 3 988 3 763 - 225 225 94% 94% - 3 561 3 561 3 561 3 561 - - - 100% 100% 6 607 338 6 445 617 6 580 429 6 383 012 - 224 326 197 417 97% 97% Total 6 352 076 120 450 134 812 62 Rollover request – Equitable share Vote number Department R'000 2014/15 Adjusted budgets Unspent Funds Roll overs Request equitable share Recommended 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 3 272 024 7 271 744 744 465 087 4 006 4 007 3 873 1 035 418 30 974 Vote 6 Finance Co-operative Governance and Traditional Affairs Agriculture, Rural Development and Land Administration Economic 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 Vote 10 Health 9 032 547 153 255 Vote 11 Culture, Sport and Recreation 443 576 32 473 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 Vote 4 Vote 5 11 600 11 600 16 601 16 036 - Rollover request – Conditional Grants Conditional Grant Amount commited Amount Unspent and Recommended R'000 R'000 Agriculture, Rural Development, Land and Envirmental Affairs Comprehensive Agricultural Support Programme Grant Ilima/Letsema Projects Grant Land Care Programme Grant Poverty Relief and Infrastructure Development EPWP Intergrated Grant for Provinces Provincial Disaster Grant 28 293 26 909 178 1 201 5 Education Dinaledi Schools Grant Education Infrastructure Grant HIV and AIDS (life Skills Education) Grant National School Nutrition Programme Grant Technical Secondary Schools Recapitalisation Grant Further Education and Training Colleges Grant OSD for Education Sector Therapists Grant EPWP Integrated Grant for Provinces Social Sector EPWP Incentive Grant for Provinces Amount to be forfeited - 1 384 - 178 1 201 5 24 291 3 751 221 12 685 7 208 3 423 14 433 3 308 11 125 - 9 858 443 221 1 560 7 208 3 423 1 1 - 1 1 336 1 331 3 1 - 336 1 331 3 1 Community Safety, Security and Liaison Social Sector EPWP Incentive Grant for Provinces - - - Economic Development, Environment and Tourism EPWP Integrated Grant for Provinces - - - Health Coprehensive HIV and AIDS Grant Hospital Facility Revitalisation Grant National Professions Training and Develoment Grant National health Insurance Grant National Tertiary Services Grant EPWP Integrated Grant for Provinces Social Sector EPWP Incentive Grant for Provinces 86 904 71 993 12 4 484 8 216 2 199 - 71 993 71 993 - 14 911 12 4 484 8 216 2 199 - Culture, Sport and Recreation Community Library Services Grant Mass Participation and Sport Development EPWP Intergrated Grant for Provinces Social Sector EPWP Incentive Grant for Provinces 16 12 1 2 329 404 726 199 - 11 537 10 500 1 037 - 4 792 1 904 689 2 199 - 225 225 - 225 225 70 381 70 381 70 380 70 380 1 1 226 198 168 343 31 508 Corperative Goverance and Traditional Affairs EPWP Intergrated Grant for Provinces Public Works, Roads and Transport Provincial Roads Mainatance Grant Public Transport Operations Grants EPWP Integrated Grant for Provinces Provincial Disaster Grant Social Development EPWP Integrated Grant for Provinces Social Sector EPWP Incentive Grant for Provinces Human Settlements Human settlements Development Grant TOTAL MPUMALANGA PROVINCIAL PERSONNEL NUMBERS AS AT 31 MARCH 2015 - as per IYM DEPARTMENT EDUCATION HEALTH SOCIAL DEVELOPMENT OFFICE OF THE PREMIER MPUMALANGA PROVINCIAL LEGISLATURE FINANCE CO-OPERATIVE GOVERNANCE AND TRADITIONAL AFFAIRS AGRICULTURE, RURAL DEVELOPMENT, LAND AND ENVIRONMENTAL AFFAIRS ECONOMIC DEVELOPMENT AND TOURISM PUBLIC WORKS, ROADS AND TRANSPORT COMMUNITY SAFETY, SECURITY AND LIAISON CULTURE, SPORT AND RECREATION HUMAN SETTLEMENTS TOTAL HEADCOUNT Previous Yr Actual Actual Mar-14 Apr-14 May-14 46 032 44 587 44 587 19 080 19 522 19 774 1 902 1 901 1 914 278 282 281 164 177 177 366 345 345 Actual Jun-14 44 926 19 629 1 950 283 177 346 Actual Jul-14 44 841 19 627 1 980 286 177 347 Actual Aug-14 44 483 19 505 2 033 286 177 345 Actual Sep-14 44 725 19 434 2 035 284 178 343 Actual Oct-14 44 660 19 412 2 063 276 178 342 Actual Nov-14 44 587 19 250 2 068 273 180 340 Actual Dec-14 44 587 19 223 2 075 272 184 327 Actual Jan-15 44 587 19 379 2 083 268 185 325 Actual Feb-15 44 587 19 421 2 070 269 185 323 Actual Mar-15 44 587 19 455 2 066 269 194 327 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 1 672 419 3 694 1 911 329 374 77 471 1 672 458 3 657 1 919 324 384 76 516 1 672 458 3 657 1 919 333 384 76 789 1 672 459 3 581 1 919 335 386 76 951 1 668 455 3 581 1 919 335 385 76 889 1 701 438 3 580 1 919 337 389 76 746 1 701 435 3 580 1 919 337 387 76 919 1 701 432 3 580 1 919 337 381 76 851 1 701 430 3 580 1 919 339 419 76 656 1 657 432 3 580 1 919 427 383 76 627 1 672 271 3 580 1 919 427 384 76 651 1 672 270 3 580 1 919 427 387 76 681 1 672 267 3 580 1 919 427 388 76 722 65 THANK YOU
