1. 1 THIRD QUARTER ENDING 31 DECEMBER 2006 2007-02-14
NCOP PRESENTATION ON CONDITIONAL GRANTS AND CAPITAL EXPENDITURE – NORTH WEST
THIRD QUARTER ENDING
31 DECEMBER 2006

2. PURPOSE
To provide information to the NCOP on data trends in allocations, transfers and actual expenditure of all conditional grants and capital expenditure managed by the department.
A brief assessment of the monitoring capacity for the period ending 31 December 2006.
Over/under spending and the capacity constraints.
A brief indication of achievements.

3. OVERVIEW
6 conditional grants and one Fund from Belgium managed by NWDoH.
Constitutes 16% of total budget.
There has been a marked increase in the allocations and expenditure for the province with a view of closing the equity gap with other provinces.
Strengthening of project management in relation to conditional grants has improved the monitoring capacity.

4. 3RD QUARTER OVERALL DEPARTMENT’S PERFORMANCE.
Total allocation
3rd Quarter Expenditure
3rd Qrt. %.
Year To Date Expend. %.
Year To date Exp.%.
3,616,004
2,489,967
69%
2,811,612
78%

5. OVERALL PERFORMANCE HIGHLIGHTS.
Expenditure patterns over the months have picked up in December 2006.
It is expected that there will be no “March spike “ specifically in capital expenditure as the bulk of the expenditure was incurred in December for construction work mainly for the Infrastructure and Clinic Building projects.
The increased expenditure was also related to performance remuneration which was delayed in the second quarter due to inadequate funding. Funding was addressed in the Adjustment Estimates.
Payment outstanding laboratory services was also done in December after the additional allocations from the Adjustment Estimates.

6. PROJECTIONS TO MARCH’07.
The Department projects expenditure to be on target at the end of the financial year based on the following:
Expenditure for personnel will cover all outstanding performance remuneration costs.
Expenditure for equipment will include the payment for the delivered 46 ambulances; 26 Patient Transport vehicles; 6 Forensic vehicles and 6 Mobile clinics. (R45m).
Payment for all outstanding laboratory costs for the National Health Laboratory Services (NHLS).(R30m).
Accruals are expected to be reduced in comparison with the previous financial year ( 2005/200) which was at R181m.

7. 3RD QUARTER OVERALL CONDITIONAL GRANTS PERFORMANCE.
Total allocation
3rd Quarter Expenditure
3rd Qrter %.
Year To Date Expend. %.
Year To date Exp.%.
595,470
411,312
69%
449,190
76%

8. 3RD QRT. GRANTS FOR THE YEAR 2006/07.
BUD.
ROLL-OVER
TOTAL AVAIL.
AMT RECEIVED
AMT SPENT
% SPENT
COMPREHENSIVE HIV & AIDS
142,316
6 000
148,316
106,740
107,837
73%
HOSPITAL REVITALIZATION
190,884
32,704
223,588
157,586
147,541
65%
HEALTH PROFESSION TRAINING & DEVELOPMENT
62,564
46,925
50,542
81%
NATIONAL TERTIARY SERVICES GRANT
69,380
52,038
42,289
61%
FORENSIC PATHOLOGY SERVICES
29,440
10,666
40,106
22,080
8,262
21%
INFRASTRUTURE GRANT
51,000
50,874
46,052
90%
TB & HIV COLLABORATION
516
387
75%
TOTAL
546,100
49,370
595,470
436,759
411,312
69%

9. ANALYSIS OF VARIANCE.
The overall expenditure is at 69% against the 75% target, with a 6% variance.
The Comprehensive HIV & AIDS grant is almost on target at 73%.
Grants above target are : Health Professional Training and the Infrastructure grant while the TB & HIV Collaboration donor fund is also on target.
The National Tertiary service grant is not on target, however has committed funds in equipment such as CT Scan for the Rustenburg Hospital and X-ray machines for both Potchefstroom and Tshepong hospitals. This will bring the expenditure on target.
The Hospital Revitalization grant is not on target due to delays in the construction on Moses Kotane and Vryburg hospitals. These are currently being addressed. The projected under spending amounting to R35m is earmarked to address the envisaged shortfall in the Infrastructure grant.
The under expenditure in the Forensic Pathology Services grant is also being addressed. There are commitments for delivery of office furniture amounting to R2m as well as the envisaged claim from SAPS amounting to R3,5m for expenditure incurred for salaries. The commitments are expected to reduce the projected amount to be rolled over.

10. EXPENDITURE YEAR TO DATE
GRANT
BUDGET
1ST QRT
2ND QRT
3RD QRT
YTD
% SPENT
COMPREHENSIVE HIV & AIDS
148,316
24,857
54,125
107,837
131,465
89%
HOSPITAL REVITALIZATION
223,588
19,675
74,803
147,541
149,104
67%
HEALTH PROFESSION TRAINING & DEVELOPMENT
62,564
15,391
34,858
57,645
56,967
92%
NATIONAL TERTIARY SERVICES GRANT
69,380
12,862
26,028
45,737
52,800
76%
FORENSIC PATHOLOGY SERVICES
40,106
717
2,275
8,950
9,756
24%
INFRASTRUTURE GRANT
51,000
12,508
32,299
46,070
47,890
94%
TB & HIV COLLABORATION
516 23
389
472
TOTAL
595,470
86,010
224,411
411,312
449,190

11. OVER/UNDER EXPENDITURE
Total amount received for the period under review is: R436,759m.
Total amount spent as at end Dec.: R411,312m.
The unspent amount is R25,447m which is 6% of the amount received.
There is a 6.44% improvement in comparison with 05/06 same period.
Total amount spent as at 12TH February 2007 is R449,190m which is 76% of the overall allocation.

12. PROJECTIONS TO MARCH’07.
All conditional grants will be fully utilized with the exception of the Revitalization grant and the Forensic Pathology Services grants.
Treasury has been approached for the utilization of R35m of the Revitalization grant for the shortfall in the Infrastructure and Clinic Building projects. Approval is still awaited. Should the request be approved, there will not be roll over of funds for the Revitalization grant.
An estimated amount of R10m will have to be rolled over for the Forensic Pathology Services grant.

13. ACHIEVEMENTS – CAPITAL EXPENDITURE.
TARGET – 21 CLINICS
8 Clinics Completed – Churchill, Coldridge, Mothotlung, Setlagole, Tseoge, Disaneng, Vriesgewacht, Austrey, Swaartdam.
10 clinics at completion stage.
1 clinic at window height- level and
2 clinics at roof height.
3 On tender.
11 on Planning

14. ACHIEVEMENTS – CAPITAL EXPENDITURE.
TARGET – 12 CHC’S
1 CHC Completed – Boitekong.
3 CHC’s at completion stage.
4 CHC’s at adjudication stage – Bapong, Tswelelang 2, JB Marks and Letlhabile.
2 CHC’s are on planning - Boikie Tlhapi and Madikwe.

15. ACHIEVEMENTS – CAPITAL EXPENDITURE.
IMPLEMENTATION OF MASTER PLAN:
4 ARV Clinics completed.
3 ARV Clinics under construction.
1 on planning.
Master plan of Jubilee Hospital complete.
6 Health Posts under construction.

16. ACHIEVEMENTS – CAPITAL EXPENDITURE.
Rehabilitation of 3 Hospitals.
Ganyesa Hospital Rehabilitation –site handed over, the contractor casting foundations.
Bloemhof Hospital – Painting of Roof completed, Casting of foundations – 25%, brick work just started.
Christiana Hospital -Doctors Quarters – The project is Gaining Momentum – Foundations 100% and Brickwork is 30%.

17. ACHIEVEMENTS – CAPITAL EXPENDITURE.
Rehabilitation of 4 Hospitals on planning stage.
Witrand on Planning.
Klerksdorp /Tshepong MDR TB Unit on Planning.
Potchefstroom Hospital Standby generator – Contractor is on site.
Potchestroom Hospital Kitchen – Preparation of Tender documentation.
Mafikeng Hospital Orthopaedic Workshop – Internal Finishes.

18. ACHIEVEMENTS.
Transfers to NGOs rendering health services including Home Based Care programme have been completed.
Payments to 3168 Community Health Workers / care givers have been effected.

19. REMEDIAL ACTION.
Compliance with PFMA requirements have been tightened.
Monitoring tools for different grants have been reviewed and implementation is taking place.
Internal capacity is being reinforced specifically with the Forensic Pathology Services and the Revitalization programme.

20. TRENDS IN EXP. & ALLOCATIONS
Year
01/02
02/03
03/04
04/05
05/06
06/07
07/08
08/09
NTSG
38,520
32,891
35,000
38,606
71,889
69,380
81,409
94,114
HPT&D
24,377
52,824
37,112
44,903
64,012
62,564
65,692
68,977
Hosp.Revt.
44,707
6,513
37,981
81,930
70,142
190,884
176,966
231,966
HIV/AIDS
2,253
21,303
31,260
64,619
100,921
142,316
156,429
181,168
HMQI
14,193
12,196
9,407
17,849
Forensic
734
2,230
29,440
22,835
22,158
Infrstrc
8,587
43,971
26,419
22,722
42,174
51,000
70,900

21. TRENDS IN EXP,TRANSFERS.& ALLOCATIONS
Transfers from National Health has been received in full from the first to the third quarter.
Allocations for the HIV & AIDS Grant specifically for the ARV programme do not meet the increasing demand. R6m was received additional from NDoH.
An additional amount of R64m has been received from the Provincial Treasury as requested by the NWDoH.

22. CONCLUSION.
The department is confident that systems are now in place to monitor the performance of conditional grants in line with DORA hence the improved outcome in comparison with the 2005/06 financial year.
Roll over will be limited to only one grant.

23. CLOSURE
Thank you for listening