Public hearing 4th quarter Provincial Budget Report on conditional grants and capital expenditure

1
Public 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

2
Overview

• 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

3
Expenditure 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
4
Expenditure 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
5
Expenditure trends per month
6
Budget 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
7
Monitoring 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

8
Findings 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

9
Challenges

• 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)

10
Challenges

• 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

11
Strengths

• 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

12
Programme 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

13
Way 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

14
Way 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

15
Way 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

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THANK YOU