Provincial Treasury Western Cape NCOP Select Committee on Finance Public Hearings Conditional Grant and CAPEX 4 February 2008

Outline Conditional grant, infrastructure and capital allocations, transfers and expenditure as at 31 December 2007; and Monitoring provincial expenditure.

Conditional Grants Allocations, Transfers and Actual Expenditure - 2007/08

CG expenditure as at 31 December 2007 Overview of CG expenditure as at 31 December 2007

CG expenditure as at 31 December 2007 (2)

Education – Conditional Grant Expenditure as at 31 December 2007

Health – Conditional Grant Expenditure as at 31 December 2007

CG Expenditure – Health (2) Reasons for slow expenditure on the Forensic Pathology Services Grant are the following: Personnel expenditure: Despite considerable effort to fill the targeted staff establishment the Department will not be able to achieve the target of 296 filled posts in this financial year. The Department achieved to fill 198 positions by the end of Quarter 3. This is largely due to the fact that it is difficult to attract personnel to this environment and that the Forensic Pathology field is a scarce skill.  Infrastructure: On average on the 5 contracts currently under construction, 80% of contract time has lapsed and yet only 50% of contract value spent. This is due to the fact that the cost drivers in the projects are only installed from now (air-conditioning, cold rooms and refrigerated units, all the specialised equipment such as downdraft tables and autopsy tables as well as other fixtures and fittings). These contracts will also not be completed on time as a month has been lost due to inclement weather (recorded and documented rain days).  

Local Government and Housing – CG Expenditure as at 31 December 2007 R 229 million rolled-over from the previous financial year for N2 Gateway. Total earmarked for N 2 Gateway is R429 million. Projected under spending R101 million as a result of: - Protests at Joey Slovo and - Delft invasions and Court Case Total of R748 million for IHHSD. Projected under spending of R50 million-further analysis on the way.

Infrastructure Grant to Provinces: Expenditure as at 31 December 2007 Original budget of R411,844 million increased by R45,311 million from roll-over funds (mainly from unspent funds for roads) from the previous financial year to R457,155 million in the Adjustments Estimate. R394,142 million or 86,2 per cent of the R457,155 million allocated already spend by Departments.

Agriculture – Conditional Grant Expenditure as at 31 December 2007

CG Expenditure – Agriculture (2) The Departments already indicated that they will under spend on the Agricultural Disaster Management Grant and that R14,2 million will be rolled-over to the outer years. The Grant framework for disaster management provides for spending over a two-year period. Cumbersome consultation processes with communities, delays in the processing of MOAs and engineering designs have been indicated as a reason for the slow spending in the first nine months of the financial year. Slow spending on grants also resulted from the slowing of many projects to reroute resources to address the floods and hail disasters experiences in the Province. Slow spending on CASP and the Land Care Programme will accelerate in the latter part of the financial year when the implementation of most of the projects realise.

Cultural Affairs and Sport – Conditional Grant Expenditure as at 31 December 2007

CG Expenditure – Cultural Affairs and Sport (2) The community library services grant is a new grant for 2007/08 and the measurable outputs include appointment of qualified staff and increased access to library users. Spending on the grant will mostly take the form of transfer payments to municipalities and will only commence in the latter part of the 2007/08 financial year.

Infrastructure and capital expenditure as at 31 December 2007

Monitoring and evaluation

Monitoring Provincial Expenditure Continuous engagements with departments in a cooperative manner to jointly seek solutions and prevent fiscal dumping, the practical implications of which is contained in this presentation; Quarterly reports to Top Management, Cabinet and Legislature; Frequent interaction with departments on spending performance and general issues as highlighted by monthly IYM’s; Quarterly narrative reports to AO’s and CFO’s; Quarterly meetings between MEC’s for finance, education, health and public works to discuss infrastructure spending and other difficulties; Specific provincial initiatives to ameliorate the March spike; CFO intergovernmental forums.

Thank you