Title: Public hearing 4th quarter Provincial Budget Report on conditional grants and capital expenditure
1Public hearing 4th quarter Provincial Budget
Report on conditional grants and capital
expenditure
- Select Committee on Finance
- Presentation by Northern Capes Department of
Agriculture and Land Reform - 4 May 2006
2Overview
- Expenditure summary - overall departmental budget
- Expenditure summary - conditional grants
- Expenditure trends per month
- Budget vs. actual
- Monitoring and Evaluation
- Findings of quality assurance exercise
- Challenges
- Strengths
- Programme of Action
- Way forward
3Expenditure Summary - overall departmental budget
Description Adjusted budget Actual at end of March 2006 Actual as of budget (Over)/Under over under main budget
Equitable Share 83,894 81,916 98 1,978 2
Earmarked Funds 13,500 10,799 80 2,701 20
Conditional Grants 58,986 38,427 65 20,559 35
156,380 131,142 84 25,238 16
4Expenditure Summary - conditional grants
Conditional Grant Adjusted Allocation Rollover Total Conditional Grant Spent at 31 March 2006 spent of total budget (over) / under
CASP 13,148 2,844 15,992 9,767 61 6,225
Land Care and Poverty Relief 2,000 1,993 3,993 2,121 53 1,872
PIG 3,172 2,128 5,300 3,712 70 1,588
Drought Relief 20,000 13,701 33,701 22,827 68 10,874
38,320 20,666 58,986 38,427 65 20,559
5Expenditure trends per month
6Budget vs. actual
Budget 2005/2006 Actual Spending to date (over)/ under expenditure Exp vs. Budget (over) / under exp
Maintenance 559 1,074 -515 192 -92
Capital Expenditure 7,241 20,178 -12,937 6 -279
Total Infrastructure 22,298 14,292 8,006 64 36
4th Quarter Report 22,907 15,099 7,808 66 34
7Monitoring and Evaluation
- Project Coordinating Committee established,
meetings held quarterly - Assesses project proposals
- Recommends for approval
- Assesses and evaluates progress
- Project leaders appointed for implementation of
various projects - Co-ordinator assigned to coordinate
implementation - Quality assurance conducted on CASP, Landcare and
Food security projects
8Findings of Quality assurance exercise
- Projects implemented according to approved
business plans - Procurement procedures were followed
- The conditional grants bringing meaningful change
in the lives of beneficiaries - Able to implement best farming practices
- Employment created
- Sustainability of the projects dependant on
- Other funding for production inputs in order to
avoid debts - Implementation of mentorship programme
- Conflicts in few projects must be resolved
before expenditure occurs
9Challenges
- Northern Cape Province struggling to recruit and
retain good/relevant scarce skills - Few field officials to provide after-care and
implement new projects at the same time - Delays in the implementation and expenditure
(only started to spend in the 2nd quarter) as a
result of - Lack of Agricultural engineers and Industrial
Technicians (competition with industry and
recruitment by Private sector) - Too many projects in 2005/6 (29 projects in
2005/6 as compared to 9 projects in 2004/5)
10Challenges
- Late delivery of material by the appointed
suppliers - Few BEE companies participate and in some cases
we have identified fronting - Some suppliers not following specifications e.g.
delivery on non-SABS approved water pipes and
thus, - Project being suspended until supplier delivers
appropriate material or - New suppliers being appointed
- More demands by other land reform beneficiaries
the more they see implementation and changes in
the approved projects
11Strengths
- Department managed to retain certain skills in
the last three years - In an attempt to improve on capacity and proper
planning we have strengthened partnerships with - Other departments, as an example establishment of
the Land Reform Coordinating Committee - To discuss on various land reform projects
- To share information on priority areas related to
CASP, Landcare, Food Security - DBSA, IDC, ARC, FARM Africa and commercial banks
- Ensured that projects are discussed at municipal
level with signature of municipal manager before
tabled for approval at provincial level
12Programme of Action
- Submission on project proposals for 2006/07 were
finalised in September 2005 - Approval by provincial DoA done by October 2005
- Presentation to national Department of
Agriculture done by November 2005 and already
approved - Outstanding projects for 2005/06 to be completed
by June 2006 - Tender approval for 2006/07 by mid-June 2006
- Implementation for 2006/07 projects to commence
end-June 2006
13Way forward
- Personnel
- Departmental organogramme re-aligned based on
clear operational units, line of authority and
accountability - Complete provincial scare skills analysis and
introduction of strategy to attract scarce skills - Appoint more field officers (aim for at least one
Extension officer per municipality) - Appropriate deployment of scarce skills
- In collaboration with DoA and Provinces, finalise
the remuneration scale for scarce skills in order
to reduce movement of officials between provinces
14Way forward
- Projects Planning
- Review project proposals in line with ASGI-SA and
IDPs - Already reduced the number of projects for
2006/07 - Ensure that planning is completed prior to April
- Tenders for all projects to be approved by end of
2nd quarter - Implement quality assurance to avoid fruitless
expenditure
15Way forward
- Reconciliation will be performed between In Year
Monitoring (IYM) and the Infrastructure Model
(IRM) - Budgets and expenditure to be captured on BAS
under correct items and according to the
Appropriation Acts - Provincial Treasury developed a model that will
be used to complete the quarterly reports - Distinguish between Infrastructure Maintenance
and Capital spending on Infrastructure - Will ensure that the Department and Provincial
treasury report on similar infrastructure figures
16THANK YOU