EXPENDITURE OUTCOMES AS AT

31 MAY 2011

PRESENTER: MS LERATO THWANEDATE: 14 JUNE 2011

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Section 32 of the PFMA and Quarterly Financial Reports

Section 32 of the PFMA refers to the publishing requirements by National Treasury of a monthly statement of actual revenue and expenditure with regards to National Revenue Fund.

In order to assist National Treasury in doing this, departments have to provide information in a prescribed format and in line with timeframes as per practice notes that National Treasury issues.

The monthly requirement is that expenditure information is reported to National Treasury in a prescribed format. The quarterly requirement is for interim financial statements to be submitted also in a prescribed format at the end of each quarter.

The following slides present the current year’s expenditure information and the analysis of expenditure trends as at 31 May 2011; this information is presented to National Treasury on a monthly basis in order to feed into their system to comply with section 32 of the MFMA.

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EXPENDITURE PER PROGRAMME AND

TRANSFERS(Expenditure outcome Department)

1. Administration 212 469 20 383 192 086 9.6%

2. Policy , Research and Knowledge Mang Support 46 006 4 802 41 204 10.4%

3. Governance and Intergovernmental Relations 36 719 2 076 34 643 5.7%

4. National Disaster Management Centre 821 172 2 555 818 617 0.3%

5. Prov incial and Municipal Government Systems 28 896 5 602 23 294 19.4%

6. Infrastructure & Economic Development 216 474 4 100 212 374 1.9%

7. Traditional Affairs 83 769 6 781 76 988 8.1%

Total 1 445 505 46 299 1 399 206 3.2%

8. Fiscal Transfers (SALG; MDB SACN) 69 250 11 872 57 378 17.1%

9. Municipal Transfers 45 770 826 45 770 826 0.0%

10. Community Works Program 647 899 81 332 566 567 12.6%

11. Thefts and Losses 100 5 95 5.0%

Grand Total 47 933 580 139 508 47 794 072 0.3%

Underspending/ (Overspending)COGTA

Expenditure as % of Total AllocationENE Budget 2011

Total Expenditure (R’000)

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EXPENDITURE PER ECONOMIC CLASSIFICATION

Economic ClassificationCurrent expenditure 691,355 86,233 605,122 12.5%

Of which:Compensation of employees 232,862 37,072 195,790 15.9%

Goods and Services 458,393 49,156 409,237 10.7%

Payments for financial assets 100 5 95 5.0%

Transfers and subsidies 47,222,446 52,484 47,169,962 0.1%

Of which:

Provinces and municipalities 46,545,926 -656 46,546,582 0.0%

Departmental agencies and accounts 86,118 11,872 74,246 13.8%

Public corporations and private enterprises 192,061 204 191,857 0.1%

Non profit institutions 10,164 10,164 0.0%

Households 388,177 41,064 347,113 10.6%

Payments for capital assets 19,779 791 18,988 4.0%

Machinery and equipment 18,019 791 17,228 4.4%

Software and other intangible assets 1,760 1,760 0.0%

Grand Total 47,933,580 139,508 47,794,072 0.3%

Underspending/ (Overspending)COGTA

Expenditure as % of Total Allocation

ENE Budget 2011

Total Expenditure (R’000)

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EXPENDITURE DETAIL PER PROGRAMME

PROG 1 ADMINISTRATION

MayEXPENSES 31 MAY 2011 BUDGET

AVAILABLE BUDGET % SPEND

TOTAL I 003 COMPENSATION OF EMPLOYEES 15,333,195 90,885,000 75,551,805 17%

TOTAL I 003 GOODS AND SERVICES 4,952,046 117,898,000 112,945,954 4%

TOTAL I 003 PROVINCIAL & LOCAL GOVERNMENTS 768 100,000 99,232 0%

TOTAL I 003 MACHINERY AND EQUIPMENT 8,398 3,686,000 3,677,602 0%

TOTAL: 20,299,538 212,569,000 192,269,462 10%

PROG 2 POLICY, RESEARCH & KNOWLEGE MANAGEMENT

I 001 PAYMENSEXPENSES 31 MAY 2011 BUDGET

AVAILABLE BUDGET % SPEND

TOTAL I 003 COMPENSATION OF EMPLOYEES 3,409,110 20,501,000 17,091,890 16%

TOTAL I 003 GOODS AND SERVICES 618,077 18,545,000 17,926,923 3%

TOTAL I 003 MACHINERY AND EQUIPMENT 774,953 6,960,000 6,185,047 11%

TOTAL: 4,802,140 46,006,000 41,203,860 10%

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Variance analysisAdministration:

The total programme spending was projected to be on 16% by 31 May 2011. Compensation of employees: The expenditure is currently at 17 % against the

projection of 16 %, which is slightly over with 1 per cent but still within the benchmark.

Goods and services: The actual expenditure reflects 4 % spending against the 18% projected. The reasons for this is that the implementation of projects have not yet started as planned.

Capital payments: The expenditure reflect 0 % versus 16% projected, the under-spending is mainly due to the procurement processes for office furniture which are still underway.

Policy, Research and Knowledge Management Support: The total programme spending was projected to be on 16% by 31 May 2011 Compensation of employees: The expenditure is currently at 16 % against the

projection of 16 %

Goods and services: The actual expenditure reflects 3 % spending against the projected 19% spending. The cost drivers according to the projected expenditure are computer services, consultants, contractors, and travel and subsistence which most are under spending, this is due to the appointment of service providers which is still in process.

Capital payments: The expenditure reflect 11 % versus 12% projected which is within the benchmark

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EXPENDITURE DETAIL PER ROGRAMME

PROG 3 GOVERNANCE&INTERGOV RELATNS

I 001 PAYMENTSEXPENSES 31 MAY 2011 BUDGET

AVAILABLE BUDGET % SPEND

TOTAL I 003 COMPENSATION OF EMPLOYEES----------------- 2,546,126 19,490,000 16,943,874 13%TOTAL I 003 GOODS AND SERVICES------------------------ 186,966 12,347,000 12,160,034 2%TOTAL I 003 PROVINCIAL & LOCAL GOVERNMENTS------------ -657,000 34,107,901,000 34,107,901,000 0%TOTAL I 003 DEPARTMENTAL AGENCIES & ACCOUNTS --------- 6,371,500 63,968,000 57,596,500 10%TOTAL I 003 NON PROFIT INSTITUTIONS (NPI)---- 10,164,000 10,164,000 0%TOTAL O 005 DPG:GOVERNANCE&INTERGOV RELATNS --------- 8,447,592 34,213,870,000 34,205,422,408 0.02%

PROG 4 DISASTER RESPONSE MANAGMNT

I 001 PAYMENTSEXPENSES 31 MAY 2011 BUDGET

AVAILABLE BUDGET % SPEND

TOTAL I 003 COMPENSATION OF EMPLOYEES----------------- 1,540,267 18,473,000 14,178,001 8%

TOTAL I 003 GOODS AND SERVICES------------------------ 1,014,857 24,555,000 23,540,143 4%

TOTAL I 003 PROVINCIAL & LOCAL GOVERNMENTS------------ 0 775,000,000 775,000,000 0%

TOTAL I 003 MACHINERY AND EQUIPMENT------------------- 0 3,144,000 3,144,000 0%

TOTAL O 005 DPG:DISASTER RESPONSE MANAGMNT------------ 2,555,124 821,172,000 818,616,876 0.3%

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Variance analysisGovernance and IGR:

The total programme spending was projected to be on 16% (excl Equitable Share) by 31 May 2011

Compensation of Employees: The expenditure is currently at 13% versus the 16% projected, mainly due to few posts that are still vacant.

Goods and Services: The expenditure on their operational budget stands at 2%, which is far below the bench mark of 16%. This is mainly due to the implementation of their project plans which are stilI at initial stages and the procurement of services for the same.

National Disaster Management Centre: The total spending was projected to be at 16% by 31 May 2011 Compensation of employees: The expenditure is currently at 8% against the

projection of 15%, this is mainly due to posts that are still vacant and not filled after the sub-programme was elevated to a programme level.

Goods and services: The actual expenditure reflect 4% spending against the projected 18% spending. The under-spending is as a result of not having the dedicated programme manager to manage the spending trends.

Capital payments: The expenditure reflects 0% versus 9.5% projected, the under-spending is mainly due the fact that the office equipments that will upgrade the state of Disaster infrastructure is yet to be procured.

Transfers and subsidies: The allocation of 775 million that has been appropriated to National Disasters if incurred and declared.

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EXPENDITURE DETAIL PER ROGRAMME

PROG 5 PROV & MUN GOVT SYSTEMS

I 001 PAYMENTSEXPENSES 31 MAY 2011 BUDGET

AVAILABLE BUDGET % SPEND

TOTAL I 003 COMPENSATION OF EMPLOYEES----------------- 5,183,999 19,362,000 16,541,206 26%

TOTAL I 003 GOODS AND SERVICES------------------------ 419,536 9,500,000 9,339,823 4%

TOTAL I 003 PROVINCIAL & LOCAL GOVERNMENTS------------ 219,420,000 219,420,000 0%

TOTAL I 003 MACHINERY AND EQUIPMENT------------------- 3,144,000 3,144,000 0%

TOTAL O 005 DPG:PROV & MUN GOVT SYSTEMS--------------- 5,603,535 251,426,000 245,822,465 2%

PROG 6 INFRA & ECONOMIC DEVELOPMENT

I 001 PAYMENTSEXPENSES 31 MAY 2011 BUDGET

AVAILABLE BUDGET % SPEND

TOTAL I 003 COMPENSATION OF EMPLOYEES----------------- 3,724,054 25,590,000 21,865,946 15%

TOTAL I 003 GOODS AND SERVICES------------------------ 40,643,769 252,945,000 212,301,231 16%

TOTAL I 003 PROVINCIAL & LOCAL GOVERNMENTS------------ 11,443,505,000 11,443,505,000 0%

TOTAL I 003 PUBLIC CORPORATIONS AND PRIVATE ENTERPRISES 192,061,000 192,061,000 0%

TOTAL I 003 HOUSEHOLDS-------------------------------- 41,064,091 388,177,000 347,112,909 11%

TOTAL I 003 MACHINERY AND EQUIPMENT------------------- 5,600,000 5,600,000 0%

TOTAL O 005 DPG:INFRA & ECONOMIC DEVELOPMENT --------- 85,431,914 12,307,878,000 12,222,446,086 0.6%

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Variance analysisProvincial and Municipal Govt Systems:

The total spending was projected to be at 16% by 31 May 2011

Compensation of Employees: The expenditure is currently at 26% against the projection of 16%, this is mainly due to provincial technical unit posts.

Goods and Services: The actual expenditure reflect 4 % spending against the projected 17% spending. The under-spending is due to projects not yet started as planned.

Capital payments: The expenditure reflects 0% versus 8% projected, the under-spending is mainly due the procurement process for the equipment for new officials that is still underway.

Infrastructure Economic Development: The total programme spending was projected to be on 16% by 31 May 2011

Compensation of Employees: The expenditure is currently at 15%, this reflects a small margin of variance which is still within the projected spending.

Goods and Services: The expenditure is on 16% versus 18%, which is nearly within the target spending, this spending patterns are being monitored in this regard.

Households: The expenditure is on 11% as projected by the Community Works Program for wage cost.

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EXPENDITURE DETAIL PER ROGRAMME

PROG 7 TRADITIONAL AFFAIRS

I 001 PAYMENTSEXPENSES 31 MAY 2011 BUDGET

AVAILABLE BUDGET % SPEND

TOTAL I 003 COMPENSATION OF EMPLOYEES----------------- 5,335,428 38,561,000 33,225,572 14%

TOTAL I 003 GOODS AND SERVICES------------------------ 1,437,865 22,703,000 21,987,838 6%

TOTAL I 003 DEPARTMENTAL AGENCIES & ACCOUNTS --------- 5,500,000 22,150,000 16,650,000 25%

TOTAL I 003 MACHINERY AND EQUIPMENT------------------- 7,999 355,000 347,001 2%

TOTAL O 005 DPG:TRADITIONAL AFFAIRS------------------- 12,281,291 83,769,000 75,014,633 15%

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Variance analysisTraditional Affairs:

The total programme spending was projected to be on 16% by 31 May 2011

Compensation of employees: The expenditure is currently at 14% against the projection of 16%, this is mainly due to just a few outstanding appointments.

Goods and services: The actual expenditure reflects 6% versus 16% projected. The under spending is mainly due to the projects and committee meetings not yet started as planned.

Capital payments: The expenditure reflects 2% versus 25% projected due to procurement processes that are still in process, there are some orders that have not been paid.

Transfers and subsidies: The expenditure reflects a 25 % transfer of the CRL commission as projected.

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