1. 1 PRESENATION TO THE PORTFOLIO COMMITTEE ON PUBLIC WORKS ON THE USAGE OF SECTION 32 REPORTS FOR OVERSIGHT PURPOSES by George Tembo National Treasury: Public Finance

2. 2 What is the Section 32 Monthly National Report Monthly publication by NT (Accountant General), gazetted Time periods covered: –Audited outcomes of the previous financial year (2008/09) –Current financial year: 1 month lag (February 2010 report refers to January 2010) Summary table of national revenue, expenditure and borrowing Table 1: Revenue: SCOA compliant, tax (SARS) & dept revenue; shows all the tax revenue plus departmental receipts (budgeted vs. actual) Table 2: Expenditure: per vote, per main econ. classification; budgeted vs. actual, spending to date Table 3: Revenue fund receipts and direct payments Table 4: Detailed information on borrowing needs including how the debt gets financed: domestic/ foreign market, loans, bonds (short term or long term) Table 5: Reconciliation of cash book (where the transactions are captured) and bank accounts (PMG & NRF balances)

3. 3 Purpose and Analysis of Section 32 Monthly National Report Track the implementation of the Appropriation Act (and after October, the Adjustments Appropriation Act) Provides a detailed analysis of national government accounts thereby increasing transparency and accountability Also provides a high level “snap shot” view of the link between expenditure, revenue and borrowing Public document – published in the government gazette. Mainly used by Parliament, financial institutions (SARB, IMF, World Bank, investors etc.) Comparison of current month (and year to date) with the same period in the previous financial year wrt: Exp: by vote and main economic classification current payments, transfers and subsidies and payment for capital assets Revenue: collection by SCOA categories Debt: deficit plus extraordinary revenue and payments Financing of the Debt: details by debt instrument

4. 4 Appropriation Act (bill) and Estimates of National Expenditure (ENE) Elements of the Appropriation Act (Bill) (as in handout) Relevant sections of the ENE as follows: Aim of the department Programme purposes Strategic overview Savings and cost effective service delivery Selected performance indicators Each programme’s details in terms of objectives and measures, service delivery focus, expenditure trends Public entities details in terms of strategic overview, savings and cost effective service delivery, selected performance indicators, service delivery focus, and expenditure trends