Feedback on road budgets RPF November 2001
Contents Background Process Information requested Information obtained Issues Current data Road forward
Background Resolution at RPF May 2001 Data on budgets be adopted as basis and be expanded for future reports Funded by Gautrans, Sabita and C&CI Focused on provincial and national data in this presentation
Aims of the project Provide information on: Budgets Selected infrastructure management aspects Southern African road authorities Actions taken by road authorities Performance against budgets.
Process followed Contacted road authorities – chief engineers etc Slow response – regular communications Other sources identified Attempted to paint full picture Verified with different sources
Responses Positive responses re participation from 9 provinces NRA 5/6 metros 2/5 toll concessionaires Data for 8 provinces / NPRA NRA 2 metros 1 toll concessionaire SADC – appears positive – needs overall approval
Information required Total budgets for department Total road authority budgets Breakdown of road budgets Budgets for specific items (i.e. bitumen and cement) Grants and transfers and non-treasury expenditure Audited figures previous years Changes to budgets Quarterly performance against budget Construction and rehabilitation programmes
Information obtained Sources Contacts in authorities Budget speeches Web-published data Auditor-General reports Treasury reports Problems encountered Response time Manpower Validity of data – only Auditor-General figures are final
Issues Manpower – skills match problem PFMA (Public Finance Management Act) – public information More effective and efficient delivery, better value for money, improved public services Develop capacity 2001/2002 Internal control and audit units Departmental structures Availability of information Budget and management systems Progress against budget Discrepancies in road network lengths and budget figures from different sources
Example of contracts management – spreadsheet
Backlog cost estimates
Backlog issues Estimated at R 23 billion Basis for calculation of backlog in network Target level of service Target network profiles Aspects included in backlog work Need similar foundations for estimates to be credible
Current information Budgets Progress against budgets Longer term budget trends Audits Grants Planned expenditure Road networks
“Transport” Department Budgets
“Roads” section budgets – 2001/2002 ?
Transport and Roads % of Provincial Budgets ?
Progress against budgets - departmental
Progress against budgets (capital) - departmental
Progress against budgets (current) - departmental
Progress against budgets Data for the whole department Capital progress not necessarily shown when funds are allocated and not yet spent Need to ensure that similar figures are reported
Spending on national and provincial roads – Intergovernmental Fiscal review
Auditor-General information
Grants Supplementary Allocation grant Ensure credible provincial budgets and adequate provision for infrastructure and social sectors Ensure progress in implementing budget and financial management reforms Provincial Infrastructure grant Fund provincial infrastructure (roads, schools, health buildings) Fund reconstruction of 2000 flood damage
Grants – 2001/2002
Grants progress – 2001/2002
Actual expenditure – 1997/98 to 2000/01 Road expenditure 2000/ ,9 % of total provincial expenditure 33% of road expenditure – new and major rehab 1997/1998 to 2000/01 26% of provincial expenditure – routine maintenance 1997/98 to 2000/01
Provincial capital expenditure on roads
Planned expenditure – 2001/2002 EC – Road maintenance R 69 million WC – Major improvement projects ( ) R 244 million Gautrans – maintenance / rehabilitation 263 km in 2001/2002 (R 226 million) Northern Province – Maintenance and construction (roads and bridges) R 266 million
Proposed projects 2001/2002
Conclusions Need for availability of valid information – roads focus Need similar reporting / calculation mechanisms (backlog, progress etc) Information is “dynamic” until the Auditor General captures it Need a team approach
Road forward PFMA effect on availability of budget and progress information Service delivery measures 2002/03 – measurable objectives, service delivery standards, targets – included in budget submissions – describe how public funds are used Need for good management systems Backlog calculations Standard format for data at regular intervals