North West provincial Treasury presentation on Conditional Grants and Capital Expenditure as at 30 J

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North West provincial Treasurypresentation on
Conditional Grants and Capital Expenditure as at
30 June 2008
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Introduction

• The report on the performance of conditional
  grants and capital expenditure covers the period
  1st April 2008 to the 31st June 2008
• Expenditure for this period under review is based
  on the straight line assumption of 25.

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Provincial Summary

• The provincial main budget for 2008/09 is
  R16,937 billion.
• Spending for the 1st quarter amounts to R3,811
  billion or 22,5.
• The conditional grant budget for the 2008/09
  financial year is R2,5 billion .
• Expenditure on the conditional grants for the 1st
  Quarter amounts to equals R429,8millon or 17.
• Amounts transferred in terms of the DORA is R746
  million, the province spent R429,8 million which
  equals 58 expenditure.

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Provincial Summary Conditional Grants
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Provincial Summary Infrastructure Funds

• The infrastructure budget equals R2.5 billion for
  the 2008/09 financial year.
• Expenditure on the Infrastructure funds equals
  17 of approved budget which is 8 short on the
  estimated 25.

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NW Office of the Premier Infrastructure Funds

• The Office of the Premier has spent 36 of their
  approved budget.
• Spending is progressing well with the unspent
  funds already committed to complete the
  maintenance and construction of traditional
  council offices.
• Project will be completed by the 31 July 2008.

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Conditional Grants/Infrastructure Exp.
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NW Department of Health

• CONDITIONAL GRANTS SPENDING
• Average spending of 17 on conditional grant has
  been registered under Health
• Hospital Revite Slow progress in Hospital that
  should have been completed namely Moses Kontane,
  Vryburg Hospital.
• Professional training and development
  Reclassification of business plan delayed
  implementation process.
• HIV/AIDS Late transfer of funds from National
  and late submission of business plans from NGOs
  delayed spending.
• Forensic Pathology The unspent funds are
  reserved for the building of mortuary at
  Kerksdorp/Tshepong Hospital.

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NW Department of Health

• Receipt of maintenance plans late from DPW
  subsequent the reprioritization processes
• Inconvenient procurement process- delayed payment
  processes.
• Delays in finalising sites for clinics
• Cancellation of contracts due to non performance
  of contractors.

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NW Department of Sport, Arts and Culture
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NW Department of Sport, Arts and Culture

• The Community Library Services Grant spent a mere
  6 as a result of the late planning, tendering
  procedures, staff recruitment and training.
• Spending on the Mass sport and recreation Grant
  seems problematic. The funds has apparently been
  divided between the departments new regional
  offices and no spending is taking place.
• The spending on the archive building projects is
  significantly going well at 76.01 .
• Department of Public Works is addressing the
  matter of Khuma library site that belonged to
  Health to allow spending on libraries.

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NW Economic Development and Tourism

• The none spending on MIDZ is as a result of the
  land issue for erecting MIDZ infrastructure.
• The operating permit not yet approved by the
  Department of Trade and Industry (DTI) .

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NW Department of Education
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NW Department of Education

• Low spending due to late delivery of HIV/AIDS
  material, spending has since improved.
• Infrastructure grant delay in finalisation of
  budgets, reprioritisation of projects and plans,
  contractors are now on site.
• Delays in finalisation of plans for sanitation
  and fencing of schools, projects are at tender
  stage.
• Nine (9) projects for minor and major renovations
  have now started, the projects will be completed
  in 3 months time.

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NW Department of Local Government and Housing
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NW Department of Local Government and Housing

• Low spending on Integrated Housing were as a
  result of the delay in registering contractors
  with NHBRC and this impacted negatively on the
  implementation and delivery of projects.
• The zero expenditure on the Bucket replacement
  was due to the lack of readiness by
  Municipalities in terms of capacity.
  Municipalities has to first erect the structures
  and claim the funds from the department.
• With regard to Disaster Management
  Municipalities were not readily available with
  the business plans and as a result no transfer
  payments could be made.

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NW Department of Transport, Roads and Community
Safety
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NW Department of Transport, Roads and Community
Safety

• The low spending pattern on the infrastructure is
  due to reprioritization of projects and delays in
  the tendering processes.
• Low spending on the EPWP and maintenance projects
  is due to transformation of the implementation
  of EPWP processes, hence project delivery was
  delayed.

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NW Department of Public Works
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NW Department of Public Works

• Devolution of Property rates Taxes The 1st
  transfer from National will be effected only in
  August 2008, the total budget is R58 million.
• Monitoring and evaluation on projects are being
  fast tracked due to implementation of IDIP
  delivery processes.
• Slow spending on maintenance has been registered
  as a result of lack of capacity and poor
  communication between client departments and the
  agent. As a remedial measure, the IDIP focus will
  now be on maintenance.

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NW Department of Social Development
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NW Department of Social Development

• Secure care centres under spending is due to the
  delay in finalizing the construction of the wall
  and the special fencing.
• Substance abuse centre The purchase of a
  building for the substance abuse centre for
  in-patients will be completed in November 2008
  and renovations will be completed within three
  months thereafter.

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NW Department of Agriculture, Conservation and
Environment
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NW Department of Agriculture, Conservation and
Environment

• The Department has spent 5 due to lack of the
  necessary capacity to design specifications and
  implement projects.
• The tender for the outsourcing of the design of
  specifications and appointment of Engineers will
  be finalised in Septemeber 2008
• The outsourcing the service will address the
  spending on Land Care Comprehensive
  Agricultural Support and Settlement Support.

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Concluding Remarks

• Although the total spending by the province seems
  to be fair, special attention has to be paid in
  addressing the spending on conditional grants and
  infrastructure.
• At this point in time the province does not have
  any surplus funds to assist departments with
  budget pressures .
• Provincial Treasury has set special meetings with
  MECs and Heads of Departments of the affected
  departments to address the issues of under
  spending of allocated budgets.
• Monthly presentation and discussion of
  expenditure reports at Heads of Department
  meetings empowers departments to addressing the
  gaps that attributes to under spending.

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Concluding Remarks

• The rollout of the Infrastructure Delivery
  Improvement Programme (IDIP) within the province
  and the active involvement of the Provincial
  Treasury with the Provincial Departments of
  Education, Public Works and Health and the
  National Treasury definitely revealed positive
  results in the infrastructure planning, delivery
  and management.
• The NW provincial treasury continues to meet
  provincial departments regularly to facilitate
  the acquiring of resources, requisite skills to
  improve budget planning and spending capacity and
  to address areas where there are risks of both
  over and under spending.

THANK YOU