DEPARTMENT OF LABOUR

Expenditure – 30 JUNE 2009

MAIN DIVISIONS OF THE VOTE

PROGRAMME ORGINAL ACTUAL AVAILABLE BUDGET EXPENDITURE BUDGET Time Exp

2009/2010 30-Jun-09R'000 R'000 R'000

Administration 392,500 95,665 296,835 25% 24%Service Delivery 777,121 152,707 624,414 25% 20%Empl. & Skills Dev. Services / Human Res. Dev. 481,227 189,075 292,152 25% 39%Labour Policy & Labour Market Programmes 466,547 181,002 285,545 25% 39%Social Insurance 8,977 410 8,567 25% 5%

TOTAL 2,126,372 618,859 1,507,513 25% 29%

%

ECONOMIC CLASS. CURRENT PAYMENTS

GFS ORGINAL ACTUAL AVAILABLEClassification BUDGET EXPENDITURE BUDGET Time Exp

2009/2010 30-Jun-09R'000 R'000 R'000

Current Payments 1,304,237 272,539 1,031,698 25% 21% Compensation of Employees 734,638 145,153 589,485 25% 20% Goods and Services 569,599 127,385 442,214 25% 22% Interest and rent on land - - - - -

Financial transactions in assets and liabilities - 1 (1) 25% - Unauthorised Expenditure - - - - -

%

Current Payments• Expenditure on CoE is indicated as 20% of the

allocation, against time expiration of 25%, suggesting a 5% underspend. This is mainly due to vacancies within the department and an aggressive exercise is being undertaken to fill all vacant posts.

• Within Goods and Services, reflecting a 3% lag, is expenditure attributed to Repairs and Maintenance projects, PPP unitary fees, Leases and rentals for office buildings which are quarterly payments.

• Expenditure reflected under Financial transactions in assets and liabilities is attributed to bad-debt write-offs.

COMPENSATION OF EMPLOYEES

PROGRAMME ORIGINAL BUDGET ACTUAL AVAILABLE2009/2010 EXPENDITURE BUDGET Time Exp

30-Jun-09R'000 R'000 R'000

Administration 89,411 14,897 74,514 25% 17%Service Delivery 545,478 108,849 436,629 25% 20%Empl. & Skills Dev. Services / Human Res. Dev. 60,927 12,343 48,584 25% 20%Labour Policy & Labour Market Programmes 38,822 9,064 29,758 25% 23%Social Insurance - - - - -

TOTAL 734,638 145,153 589,485 25% 20%

%

OFFICE / PROGRAMME TOTAL APPROVED

POSTS

FILLED IN THE PROCESS OF

FILLING

TOTAL VACANCIES

VACANCY RATE AS AT 15 OCTOBER 2009

VACANCY RATE AS AT 30 SEPTEMBER

MINISTER 10 10 0 0 0.00% 40.00%

OFFICE OF DG 8 7 1 0 0.00% 25.00%CORPORATE SERVICES 403 273 54 76 18.86% 33.82%ESDS 141 111 24 6 4.26% 20.98%LP & LMP 132 108 0 24 18.18% 29.25%SERVICE DELIVERY HQ 83 58 22 3 3.61% 36.67%SD: PROVINCE OFFICESKWAZULU / NATAL 993 792 75 126 12.69% 20.59%WESTERN CAPE 672 534 22 116 17.26% 13.37%EASTERN CAPE 704 570 58 76 10.80% 14.63%NORTHERN CAPE 276 230 13 33 11.96% 5.65%FREE STATE 437 367 26 44 10.07% 11.57%LIMPOPO 427 350 9 68 15.93% 12.13%NORTH WEST 385 329 8 48 12.47% 9.89%GAUTENG SOUTH 960 772 56 132 13.75% 13.54%GAUTENG NORTH 441 373 32 36 8.16% 10.69%MPUMALANGA 454 383 32 39 8.59% 17.37%INDLELA 240 219 10 11 4.58% 11.65%UI FUND 439 389 46 4 0.91% 12.76%COMPENSATION FUND 707 593 51 63 8.91% 16.12%

GRAND TOTAL 7912 6468 539 905 11.44% 15.94%

ECONOMIC CLASS. TRANSFERS & SUBSIDIES

GFS ORGINAL ACTUAL AVAILABLEClassification BUDGET EXPENDITURE BUDGET Time Exp

2009/2010 30-Jun-09R'000 R'000 R'000

Transfers and subsidies to: 779,721 344,486 435,235 25% 44% Departmental agencies and accounts 406,714 180,247 226,467 25% 44% Foreign governments & international organisations 9,295 - 9,295 25% 0% Public corporations & private enterprises 303,020 152,030 150,990 25% 50% Non-profit institutions 60,522 11,233 49,289 25% 19% Households 170 976 (806) 25% 574%

%

• As at 30 June 2009, expenditure relating to Departmental agencies and accounts is reflected as 44% of the allocation. This situation is however due to the clauses as agreed upon in the drawdown agreements with recipients with for example, the CCMA requesting 50% of its allocation within the first quarter.

• The allocation for Foreign governments and international organisations is yet to be expensed as these are affiliation fees to ILO and ARLAC, and are only transferred in the 3rd and 4th quarter.

• Public corporation transfers are funds transferred to the Umsobomvu Youth fund with 50% of the allocation being expensed in the first quarter, as per the drawdown agreement.

• Expenditure for Non-profit institutions is expensed as per the drawdown agreement between the Department, Productivity SA and the SEF.

• The bulk of expenditure on Households is as a result of severance packages and leave gratuities.

Transfers and Subsidies

ECON. CLASS. PAYMENTS FOR CAPITAL ASSETS

GFS ORGINAL ACTUAL AVAILABLEClassification BUDGET EXPENDITURE BUDGET Time Exp

2009/2010 30-Jun-09R'000 R'000 R'000

Payments for capital assets 42,414 1,834 40,580 25% 4% Buildings & other fixed structures 30,600 1,387 29,213 25% 5% Machinery and equipment 11,814 447 11,367 25% 4% Software and other intangible assets - - - - -

%

Buildings and other fixed structures

• Rustenburg: The site earmarked for the office is on a heritage site. The South African Heritage Committee had to decide if the current constructions on the site could be demolished to clear the site for the new construction. This delayed the progress on this site. The Heritage site matter has been resolved and a call for bids is scheduled for November 2009.

• Bochum: Site clearance was completed. There was a constraint with the registration of the land transfer at the Deeds Office. That is now resolved and Architects were appointed to start with the design for construction.

• Mount Ayliff: The progress on this site is very slow. Funding was available to proceed in 2005 but the whole process was delayed and as a result the funding for the project was refunded to fiscis. According to the latest National Site Delivery Programme of DPW updated at the end of July 2009 the status reads that Plans for construction are in approval phase.

• Taung: Provisional site clearance has been issued. The Municipality confirmed in writing that the land will be donated. The consultant is busy with the survey and subdivision of the property.

• Garankuwa: The appointment of the consultant is underway. • Bronkhorstspruit: The appointment of the consultant is underway.• Temba: The Project Execution Plan (PEP) was approved and site clearance has commenced.• Lusikisiki: A letter was sent to the municipality in order to identify and allocate strategic land for

the proposed development. Consultant appointed.• Jane Furse: Reasons for declining the cleared site have been furnished but the alternative or

client preferred site has not been indicated. (Possible change to lease.)• Mamelodi: Client has accepted the identified site. The Project Execution Plan (PEP) was

approved. Consultant has started with the site clearance.

Payments for Capital Assets

Machinery and equipment• Office equipment relating to the Department’s improvement to filing and archiving facilities was

delivered however, delays experienced with the installation of the filing units resulted in payment being processed at a later than expected date. (R1,0 mil reflected as at end September 2009)

• Allocations relating to Office Furniture in respect of new posts in Provincial Offices (R4,1 mil) as well as equipment relating to the upgrade of security systems at INDLELA (R5,0 mil) are scheduled for the third and fourth quarters.

Payments for Capital Assets (continued)

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