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Eastern Cape ProvinceEastern Cape Province

2007/08 Expenditure 2007/08 Expenditure Report on Q2 Conditional Report on Q2 Conditional Grants & Infrastructure Grants & Infrastructure

Presentation by: W.H. NelMEC for Finance(06 November 2007, Cape Town)

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Presentation OutlinePresentation Outline• Purpose.• Budget Summary. • Conditional Grants. • Infrastructure.• Expenditure trends on

Conditional Grants. • Discussion.

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PurposePurpose• The purpose of this report is to update

the Select Committee on Finance on the second quarter performance of conditional grants and Infrastructure for 200708 financial year.

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Budget SummaryBudget Summary

• For 2007/08 financial year Eastern Cape has a budget of R31, 4 billion, of which:

• Of this amount, Conditional Grant accounts for R3, 7 billion and Infrastructure R3, 8 billion.

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Conditional GrantsConditional Grants• Q1 expenditure stood at R429 million

against projections of R749, 7 million, recording an under spending of R320, 7 million.

• Q2 expenditure somewhat improves with actual expenditure standing at R822, 2 million against projections of R599, 7 million, thus leading to an over expenditure of R222, 5 million.

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Infrastructure.Infrastructure. • On a month-to-month basis, actual expenditure

significantly increased in the reporting period. In the month of April for example, actual spending stood at R91, 9 million and increased to R98, 5 million in May.

• In June the figure increased to R252 million, and again to R311, 8 million in July. In the month of August the figure increased to R365 million.

• In the month of September the expenditure on infrastructure further increased to R377, 6 million. With regard to the under expenditure amount of R404, 8 million, the bulk of this total amount (R240, 2 million) relates to the Department of Education under-spending.

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Table: Projected and Actual Expenditure on Conditional Grants by Type, April 2006 to March 2007Grant Type Transfers, April -

March (R'000)

Actual April -

March (R'000)

Over(-)/Under(+)

(R'000)

Actual as % of

Transfers

Over(-)/Under(+) as

% of Transfers

Comprehensive agriculture support programme 57,061 62,898 (5,837) 110.2% -10.2%Disaster Management 12,403 12,400 3 100.0% 0.0%Land care programme 11,050 8,330 2,720 75.4% 24.6%Further Education and Training 61,000 61,000 - 100.0% 0.0%HIV / AIDS Life skills (Education) 25,805 25,805 - 100.0% 0.0%National school nutrition program 266,107 170,171 95,951 63.9% 36.1%Comprehensive HIV/AIDS (Health) 232,021 277,964 (45,943) 119.8% -19.8%Forensic pathology serv ices 91,867 39,798 52,069 43.3% 56.7%Health professions training and development 133,392 134,712 (1,320) 101.0% -1.0%Hospital rev italisation 125,071 133,868 (8,797) 107.0% -7.0%National tertiary serv ices 374,203 352,272 21,931 94.1% 5.9%Integrated housing & human resettlement dev. 762,016 637,402 124,614 83.6% 16.4%Provincial infrastructure grant 742,057 742,139 (82) 100.0% 0.0%Mass sports and recreational participating program 17,060 16,918 142 99.2% 0.8%Industrial Development Zones 58,200 58,200 - 100.0% 0.0%Total Conditional Grants 2,969,313 2,733,877 235,451 92.1% 7.9%

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Conditional Grants: Actual Conditional Grants: Actual ExpenditureExpenditure

April May June July August September Total

Comprehensive Agricultural Support Programme 69,838 576 684 2 459 31,436 1,462 34,619 49.6%Land Care Programme 7,010 - 19 - 28 1,485 5,059 6,591 94.0%

Further Education and Training College Recapitalisation 78,815 - 5,000 - 34,408 - - 39,408 50.0%HIV Aids(Education) 26,797 - 1,453 - 2,629 1,595 1,980 7,657 28.6%National School Nutrition 237,885 18,274 15,508 3,525 17,476 19,826 36,569 111,178 46.7%Comprehensive HIV and Aids 233,204 8,810 30,869 14,514 11,536 15,800 14,832 96,361 41.3%Forensic Pathology Serv ices 68,135 2,200 2,428 2,452 35,298 3,504 3,028 48,910 71.8%Health Proffessions Training and Development 133,944 900 1,198 1,045 44,074 477 1,640 49,334 36.8%Hospital Rev itilisation 246,750 1,103 1,640 18,476 26,725 38,744 6,381 93,069 37.7%National Tertiary Serv ices 428,912 13,800 36,308 22,039 35,630 30,952 26,500 165,229 38.5%Intergrated Housing and Human Settlement 1,052,554 21,110 (48) 30,677 7,849 20,178 15,563 95,329 9.1% Provincial Infrastructure 1,123,343 4,927 11,363 156,515 101,223 94,186 127,140 495,354 44.1%Community Library Serv ices grant 22,680 - - - - 27 2 29 0.1%Mass Sport and Recreation Participation Programme 28,369 398 609 612 963 3,165 2,321 8,068 28.4%Total Conditional Grants 3,758,236 72,098 107,031 249,857 318,298 261,375 242,477 1,251,136 33.3%

Actual ExpenditureGrant Type Original Budget

2006/07

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Conditional Grants: Projected & Actual Conditional Grants: Projected & Actual ExpenditureExpenditure

Grant Type Projected, April to

Septmber

Actual April to

September

Over (-) / Under (+) Actual as % of

Transfers

Over (-) / Under (+)

as % of Transfers

Comprehensive Agricultural Support Programme 6,984 34,619 (27,635) 495.7% -395.7%Land Care Programme 701 6,591 (5,890) 940.2% -840.2%

Further Education and Training College Recapitalisation 39,408 39,408 - 100.0% 0.0%HIV Aids(Education) 13,399 7,657 5,742 57.1% 42.9%National School Nutrition 118,943 111,178 7,765 93.5% 6.5%Comprehensive HIV and Aids 116,598 96,361 20,237 82.6% 17.4%Forensic Pathology Serv ices 34,068 48,910 (14,842) 143.6% -43.6%Health Proffessions Training and Development 66,972 49,334 17,638 73.7% 26.3%Hospital Revitilisation 123,378 93,069 30,309 75.4% 24.6%National Tertiary Serv ices 214,184 165,229 48,955 77.1% 22.9%Intergrated Housing and Human Settlement 386,135 95,329 290,806 24.7% 75.3% Provincial Infrastructure 280,836 495,354 (214,518) 176.4% -76.4%Community Library Serv ices grant 5,670 29 5,641 0.5% 99.5%Mass Sport and Recreation Participation Programme 9,610 8,068 1,542 84.0% 16.0%Total Conditional Grants 1,416,886 1,251,136 165,750 88.3% 11.7%

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Expenditure trends: Under expenditureExpenditure trends: Under expenditure

Grant Type Original Budget

2006/07

April May June July August September Total

Comprehensive Agricultural Support Programme 69,838 6,408 (684) (2) (459) (31,436) (1,462) (27,635)

Land Care Programme 7,010 701 (19) - (28) (1,485) (5,059) (5,890) Further Education and Training College Recapitalisation 78,815 39,408 (5,000) - (34,408) - - -

HIV Aids(Education) 26,797 6,700 (1,453) - 4,070 (1,595) (1,980) 5,742

National School Nutrition 237,885 (18,274) 43,964 (3,525) 41,995 (19,826) (36,569) 7,765

Comprehensive HIV and Aids 233,204 (8,810) (30,869) (14,514) 66,196 3,633 4,601 20,237

Forensic Pathology Services 68,135 14,834 (2,428) (2,452) (18,264) (3,504) (3,028) (14,842)

Health Proffessions Training and Development 133,944 10,262 9,964 10,117 (32,912) 10,685 9,522 17,638

Hospital Revitilisation 246,750 19,460 18,923 2,087 (6,162) (18,181) 14,182 30,309

National Tertiary Services 428,912 21,942 (566) 13,703 112 4,791 8,973 48,955

Intergrated Housing and Human Settlement 1,052,554 (3,051) 48,808 23,375 68,114 74,090 79,470 290,806

Provincial Infrastructure 1,123,343 (4,927) 269,473 (156,515) (101,223) (94,186) (127,140) (214,518)

Community Library Services grant 22,680 5,670 - (612) (963) (27) (2) 4,066

Mass Sport and Recreation Participation Programme 28,369 (398) 9,001 - - (3,165) (2,321) 3,117

Total Conditional Grants 3,758,236 89,925 359,114 (128,338) (13,932) (80,206) (60,813) 165,750

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Infrastructure ExpenditureInfrastructure Expenditure Table 2: Projected and Actual Expenditure on Infrastructure by Vote, April to September 2007

September

Actual

Expenditur

e

Actual

Expenditure

Actual

Expenditure

Actual

Expenditure

Actual

Expenditure

Actual

Expenditure

R'000 R'000 R'000 R'000 R'000 R'000 R'000 R'000 R'000 R'000Health 876,477 1,624 28,915 37,864 164,871 97,285 40,361 370,920 431,359 (60,439) 42% 49% 505,557 Roads & Transport 1,834,629 82,581 58,582 206,594 118,473 153,071 235,584 854,885 892,351 (37,466) 47% 49% 979,744 Education 729,633 526 2,277 214 7,680 67,001 58,174 135,872 376,111 (240,239) 19% 52% 593,761 Agriculture 112,724 576 684 2 459 31,436 1,462 34,619 71,774 (37,155) 31% 64% 78,105 Public Works 180,013 6,585 6,932 4,348 16,992 11,762 21,589 68,208 85,011 (16,803) 38% 47% 111,805 Social Development 30,470 - 1,104 1,488 2,524 1,987 1,581 8,684 16,116 (7,432) 29% 53% 21,786 Sports 33,397 - - - - - 18,808 18,808 18,236 572 56% 55% 14,589 Housing 26,821 - - 1,535 803 2,460 - 4,798 10,676 (5,878) 18% 40% 22,023 Total 3,824,164 91,892 98,494 252,045 311,802 365,002 377,559 1,496,794 1,901,634 (404,840) 39% 50% 2,327,370

%

Spent

Remaining

Budget for

07/08 fin. Yr

%

Project

ed to

Spend

Total Actual

Expenditure

S 40 projection

April-Sept 07

Difference

Actual and

Projection

June July August

Depart ment2007/08

Budget

April May

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RECOMMENDATIONS RECOMMENDATIONS AND WAY FORWARDAND WAY FORWARD

• The following proposed steps to be taken to further improve the overall conditional grants spending in the Province:– Proper strategic planning;– Better alignment of budget with targets

set out in the strategic plan;– Project design is properly done resulting in

achievable cashflows;– Multi year commitments are planned and

budgeted for; and– Better spending on planning budgets that

would be continually monitored.

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THANK YOUTHANK YOU