1. TITLE: FIVE YEAR EXPENDITURE REVIEW 2010-2014: FIRST QUARTER ANALYSIS 2015/16: DEPARTMENT OF LABOUR
Research Unit
PRESENTED BY: PHELELANI DLOMO
22 September 2015

2. OUTLINE OF THE PRESENTATION
DEPARTMENTAL OUTCOME
OVERALL BUDGET ALLOCATION VS EXPENDITURE
OVERALL PERFORMANCE TARGETS
REASONS FOR UNDERSPENDING AND OTHER KEY ISSUES
TRENDS ON IRREGULAR AND FRUITLESS EXPENDITURE
SHIFTING AND VIREMENT OF FUNDS
ANALYSIS OF 2014/15 AS A MAIN FOCUS
QUARTELY EXPENDITURE FOR 2014/15
OVERALL UNDEREXPENDITURE AND SUBPROGRAMMES 2014/15
PLANNED PERFORMANCE TARGETS VS ACHIEVED TARGETS
FIRST QUARTER EXPENDITURE FOR 2015/16
ISSUES FOR CONSIDERATION, SOME RECOMMENDATIONS
IMPLICATIONS FOR THE COMMITTEE

3. OVERALL ALLOCATION AND EXPENDITURE
DEPARTMENT OUTCOME 4: DECENT EMPLOYMENT THROUGH INCLUSIVE ECONOMIC GROWTH
Advocates for the creation of decent jobs through inclusive economic growth,
This consists, labour, Trade and Industry, CoGTA, Agriculture, Forestry and Fisheries, Mineral Resources, Energy, Transport and Public works.
These departments are directly or indirectly involved in employment creation.
Each department’s role is important.

4. OVERALL BUDGET ALLOCATIONS VS EXPENDITURE 2010 – 2014

5. BUDGET , EXPENDITURE VS PERFORMANCE TARGETS 2010-2014“
000”
2010
2011
2012
2013
2014
overall
unspent
Budget
1844
2025
2155
2445
2546
11.015 -
Expenditure
1826
2007
2034
2371
2419
10.657
358 M
% Spent
99.5
95.1
97.0
95.0
96.7%
3.2 %
Performance
43.4%
140,82
59%
53,28
53%
80,60
75%
48,20
42%

6. ECONOMIC CLASSIFICATIONS: BUDGET VS EXPENDITURE

7. PROGRAMME BUDGET VS EXPENDITURE 2010 -2014
PROGRAMME “000”
2010
% Spent
2011
2012
2013 %
Spent
2014
% spent
Administration
685.1
99.%
707.0
99.6%
756.9
89.%
820.8
94.%
764.9
88.4 %
Inspection and Enforcement Service
329.3
100%
375.7
399.5
98.%
425.3
96.%
432.4
99.6 %
Public Employment Services
293.0
332.7
99.8%
210.0
246.0
100.0%
481.5
96.6%
Labour Policy and Industrial Relations
528.3
601.8
98.8%
107.8
80.%
111.6
86.%
867.4
97.7%
Total
1835
2017
99.4%
2035
95.1
2445
97.%
2546
95.0%

8. REASONS FOR UNDER EXPENDITURE AND KEY ISSUES: 2010 – 2014

9. TREND:IRREGULAR, FRUITLESS EXPENDITURE 2010 – 2014
TYPE
2010
2011
2012
2013
2014
IRREGULAR
10.2
15.6
49.1
11.7
18.5
WASTEFUL,&
FRUITLESS -
880
413
UNAUTHORIZED

10. TREND: SHIFTS AND VIREMENTS OF FUNDS 2010 -2014
PROGRAMME
2010
2011
2012
2013
2014
ADMINISTRATION
R6.9 from compensation of employees and goods and services.
R89.0 from compensation of employees, goods and services and household.
R from compensation of employees.
R58.3 from compensation of employees, goods and services.
R31.1 from compensation of employees and goods and services.
INSPECTION AND ENFORCEMENT SERVICES
R9.7 from compensation of employees and household.
R5.2 from compensation of employees.
R45.8 from compensation of employees.
R41.7 compensation of employees.
R2.0 million from goods and services.
PUBLIC EMPLOYMENT SERVICES
R4.5 from compensation of employees.
R250 000 from goods and services.
R4.9 from compensation of employees.
R from goods and services.
R31.7 million from goods and services and non-profit organisations
LABOUR POLICY AND INDUSTRIAL RELATIONS
R49000 from goods and services and machinery and equipment.
R from compensation of employee, machinery and equipment.
R2.0 from goods and services.
R4.7 from compensation of employees.
R2.6 from goods and services and compensation of employees.
 ROLL OVERS
R4.4 for Labour Policy: research on M&E
R2.9 for Labour Policy:
Evaluation study
R1.7 for Labour Policy:
R30.0 for administration: unpaid invoices for DPW. -

11. ANALYSIS OF BUDGET ALLOCATIONS FOR 2014/15 (R2.6 b)

12. BUDGET ALLOCATIONS PER ECONOMIC CLASSIFICATIONS 2014/15

13. QUARTERLY EXPENDITURE PERFORMANCE FOR THE 2014/15

14. OPERATIONAL SPENDING BY PROGRAMMES (Q 1: 2014/15)

15. SPENDING BY ECONOMIC CLASSIFICATIONS (Q1:2014/15)

16. OPERATIONAL EXPENDITURE BY PROGRAMMES(Q 2:2014)

17. SPENDING BY ECONOMIC CLASSIFICATIONS, 2nd Q

18. OPERATIONAL EXPENDITURE BY PROGRAMMES (Q3:2014

19. SPENDING BY ECONOMIC CLASSIFICATIONS (Q 3: 2014)

20. TOTAL EXPENDITURE PER PROGRAMMES Q4 : 2014/15

21. BUDGET UNDERSPENT PER PROGRAMME AND SUBPROGRAMME

22. UNDERSPENDING BY SUB PROGRAMMES: P 1

23. INSPECTION AND ENFORCEMENT SUBPROGRAMME (R1.5 m)

24. SUB-PROGRAMME PUBLIC EMPLOYMENT SERVICES R16.3 M

25. COOPERATIVE GOVERNANCE AND TRADITIONAL AFFAIRS
SUB-PROGRAMME LABOUR POLICY & INDUSTRIAL RELATIONS R19.6 M

26. PERFORMANCE AGAINST PLANNED TARGETS/ INDICATORS
Programme
Planned
Target
Overall Achieved
Not Achieved
Actual
Number
Percentage
Percent
Administration 18 8
44 % 10
56 %
Inspection
And
Enforcement
Services 14 6
43 %
57 %
Public
Employment 9 4 5
Labour Policy
And Industrial
Relations 7 2
29 %
71 %
Total 48 20
42 % 28
58 %

27. % BUDGET SPENT VERSUS PERCENTAGE OF TARGETS ACHIEVED

28. SOME REASOS FOR UNDER EXPENDITURE – 2014/15 FINANCIAL YEAR
Slow spending in P1 relates to the termination of the IT-PPP contract with Siemens,
Delays in obtaining lease invoices for office accommodation from the Department of Public Works.
Vacant positions not being filled,
Payments to be made in respect of travel, stationery, and research projects
It is concerning to see the CAPEX expenditure rising from 1 % to 77.7 % within the short period.
Low spending resulted from major events and workshops that have not taken place such as the Employment Equity roadshows, and Child Labour Day,
Payments to be made in respect of office leases, invoices for travel, stationery and research projects,

29. FIRST QUARTER EXPENDITURE ANALYSIS – 2015/16 FINANCIAL YEAR
CATEGORY
“000”
BUDGET
EXPENDITURE
% SPENT
Current payments
1.6 billion
351.3 million
20.9 per cent
Compensation of employees
1.0 billion
253.9 million
23.5 per cent
Goods and services
604.2 million
97.4 million
16.1 per cent
Transfers and subsidies
956 million
426.9 million
44.6 per cent
CAPEX
46.9 million
4 thousand
0.7 per cent
TOTAL
billion
778.8 million
29.0 per cent

30. OPERATIONAL BUDGET EXPENDITURE PER PROGRAMME

31. SOME OF THE REASONS FOR UNDER EXPENDITURE Q 1 2015/16
Slow spending on stationery, office lease (DPW) and travel (Travel and flair) as a results of less than anticipated payment,
The unfilled funded vacancies due to the funding pressures in programme 2 due to budget reduction (67.6 million) under personnel and this has affected about 98 inspector posts in this current financial year,
The Department has decided to put on hold some of the funded vacancies until April 2016.

32. ISSUES FOR CONSIDERATION

33. ISSUES FOR CONSIDERATION CONT…………

34. PROPOSED RECOMMENDATIONS GOING FORWARD

35. SOME IMPLICATIONS FOR COMMITTEE :OVERSIGHT