SELECT COMMITTEE ON FINANCE: Public Hearings on Conditional Grants and Capital Expenditure First Quarter results

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SELECT COMMITTEE ON FINANCEPublic Hearings on
Conditional Grants and Capital ExpenditureFirst
Quarter results

• Presentation by
• Rannoi Sedumo CFO (Acting HOD)
• Gilberto Martins DDG PW

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CONTENTS

• Strategic Context
• Budget trends
• Roads infrastructure
• Provincial Infrastructure Grant
• Departmental Infrastructure budget
• Gautrain
• Public Works infrastructure
• Departmental Infrastructure budget
• Client Department budgets

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VISION AND MISSION

• Vision
• Socio-economic growth, development, and an
  enhanced quality of life for all people in
  Gauteng
• Mission
• To develop an integrated, sustainable
  infrastructure, which promotes a people-centered,
  innovative, developmental public works and an
  accessible, safe and affordable movement of
  people, goods and services

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SIX (6) STRATEGIC OBJECTIVES

• Provision of accessible, affordable, reliable,
  safe, integrated and environmentally sustainable
  public transport system
• Effective management and transformation of
  transport and socio-economic infrastructure
  related institutions, systems and processes
• Support economic growth and investments through
  the provision of appropriate transport systems
  and socio-economic infrastructure
• Integrate transport systems and socio-economic
  infrastructure systems in the Gauteng Growth and
  Development Strategy and development plans of
  other spheres of government
• Implement the Expanded Public Works Programmes in
  a manner that optimizes employment and addresses
  economic and social needs of the poor
• Efficient and effective management of the
  Department

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1st Quarter Expenditure Review

• Financial year 2006/07
• Period April to June 2006

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Budget Spending trends
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Conditional Grant

• The department is a recipient of the Provincial
  Infrastructure Grant from National Treasury
• The grant is used for maintenance and
  rehabilitation of roads
• A business plan was submitted as required by
  Division of Revenue Act

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Key projects in Roads Infrastructure

• Construction of the dual carriageway and two
  intersections for Cosmo City
• Construction of K60 in Sunninghill
• Construction of a dual carriageway from Dalpark
  to Heidelberg - K109 Old Heidelberg road
• Rehabilitation of the Cullinan road in the
  Dinokeng area

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GAUTRAIN

• Delay in the sign off of the financial
  implications of the project might lead to under
  expenditure.
• Indications are that the financial closure will
  be reached towards the end of September 2006.
• This milestone will accelerate expenditure.

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GAUTRAIN EXPENDITURE
BUDGET R000 ACTUAL R000 VARIANCE R000 SPENT
4 641 000 254 405 4 386 595 5,5
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Gauteng Department of Public Transport, Roads,
and Works-The Preferred Service Provider
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DPTRW Vote 9 Program 2 Capital Works

• To construct new facilities
• Upgrade , rehabilitation, maintain existing
  facilities
• Implement client departments needs
• Render professional and technical service
• Ensure optimum usage and benefits of provincial
  property portfolio

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Expenditure Report Prg 2 Public WorksCapital
Works
Programme Number Budget April 2006 Exp May 2006 Exp June 2006 Exp Total 1st Quarter 2006 Exp 1st Quarter Exp
Program 2 R 150 315 000 R 1 680 465 R 8 860 049 R 14 620 567 R 24 981 080 16
Notes Expenditure in the April is low due to
commencing of work on site. New project started
in this financial year have a low capital
expenditure in month 1. To ensure that
expenditure is maintained at minimum average of
app R12 mil per month in accordance with budget
allocation, April month under spending is being
factored in to proceeding months. Monthly project
review meeting being held to monitor expenditure.
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DPTRW Vote 9 Program 2 Maintenance

• Upgrade , rehabilitation, maintain existing
  facilities
• Implement client departments needs
• Render professional and technical service
• Ensure optimum usage and benefits of provincial
  property portfolio

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Expenditure Report Prg 2 Public Works
Maintenance
Programme Number Budget April 2006 Exp May 2006 Exp June 2006 Exp Total 1st Quarter 2006 Exp 1st Quar Exp
Program 2 R 20 000 000 R 2 205 581 R 2 528 629 R 1 700 582 R 6 434 792 32
Note The Pretoria region has the largest number
of Public Works facilities that it is required to
maintain, hence the budget allocation is large in
comparison to the other regions ie Pretoria
Region R 10 mil Springs Region R 1.0
mil. Expenditure is in line with the projection
at present. Monthly project review meeting are
held to review progress and outputs.
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Expenditure Report Social Development
Programme Number Budget April 2006 Exp May 2006 Exp June 2006 Exp Total 1st Quarter 2006 Exp 1st Quarter Exp
Capital R 12 542 167 R 3 011 879 R 2 070 841 R 331 931 R 5 414 651 43
Maintenance R 14 700 000 R 857 507 R 1 343 551 R 783 479 R 2 984 537 21
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Expenditure Report DACE
Programme Number Budget April 2006 Exp May 2006 Exp June 2006 Exp Total 1st Quarter 2006 Exp 1st Quarter Exp
Capital R 6 749 000 R 1 741 091 R 1 121 242 R 1 137 361 R 3 999 694 60
Maintenance R 7 951 000 R 81 319 R 940 R 22 616 R 104 875 1
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No allocation
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Expenditure Report Health
Programme Number Budget April 2006 Exp May 2006 Exp June 2006 Exp Total 1st Quarter 2006 Exp 1st Quarter Exp
Capital R 556 161 792 R 97 721 612 R 71 328 956 R 57 100 890 R 226 161 458 41
Maintenance R 288 878 000 R 20 465 332 R 28 978 934 R 24 257 255 R 73 701 521 26
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Expenditure Report SRAC
Programme Number Budget April 2006 Exp May 2006 Exp June 2006 Exp Total 1st Quarter 2006 Exp 1st Quarter Exp
Capital R 46 000 000 R 4 895 012 R 2 568 765 R 4 657 564 R 12 121 340 27
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DPTRW Vote 9 Program 5 EPWP

• Enable economic upliftment and empowerment
• Reduce infrastructure backlogs
• Alleviate unemployment by creating jobs
• Facilitate skills development through training
• Target woman, youth, disabilities job creation

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Expenditure Report Prg 5 - EPWP
Programme Number Budget R 000 April 2006 Exp May 2006 Exp June 2006 Exp Total 1st Quarter 2006 Exp Available budget 1st Quarter Exp
Program 5 R 224 428 16 390 654 38 252 956 46 577 148 101 220 758 123 207 242 45
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Wayforward

• Introduction of multi year financial budgeting
  and implementation for projects.
• Life cycle budgeting to be developed at project
  identification phase.
• Contractual implementation in line with CIDB
  requirements.
• Construction Contact Centres established to
  assist with contractor development and project
  assistance.

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Monitoring capacity and planning

• Monthly Expenditure Report meetings are held
  between programme managers and the Finance
  branch.
• Senior quarterly management meetings are used to
  discuss performance of the various programmes.
• The Executive Management committee also receives
  monthly expenditure report from the CFO.
• The HOD and DDG PW holds one-on-one meetings with
  individual managers from time to time to ensure
  accountability for service delivery.

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Monitoring capacity and planning

• At unit level performance is monitored against
  operational plans.
• Monthly and quarterly infrastructure reports are
  send to Treasury.
• Project Management Resource Groups assist in
  ensuring performance happens at site level.
• Client departments needs/plans developed and
  implemented.

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Service Level Agreements

• SRAC has been signed in August 06
• Social Development , final draft with client for
  legal review and comments, will be signed 2 weeks
  post comments received by Public Works.

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Service Level Agreements

• Health Department was signed July 06.
• DACE Final draft to DACE , if approved to signed
  19th Sept
• SLAs with Blue IQ are in place for the Cradle of
  Humankind and Dinokeng projects.

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• Thank You

In order to achieve real action you must
yourself be a living part of Africa and of her
thought you must be an element of that popular
energy which is entirely called forth for the
freeing, the progress and the happiness of
Africa. Frank Talk , Steve Biko , I write what I
like