1. PRESENTATION TO THE STANDING COMMITTEE ON APPROPRIATION
DIRECTORS’ GENERAL: MR. E AFRICA
PROF. MC NWAILA
01 JUNE 2011

2. OUTLINE OF THE PRESENTATION
Introduction
Summary of Expenditure Estimates for 2010/ /12 Financial Year
Request for Roll-Over of Funds from 2010/ /12 Financial Year
Overview of the Expenditure Outcome 2010/11 Financial Year
-Expenditure Outcomes Classified per Programme 2010/11 Financial Year
-Expenditure Outcome per Economic Classification 2010/11 Financial Year
Reasons for under-expenditure
Measures to improve expenditure trends
Overview of Implementation Plans 2011/12 Financial Year
-Financial resources per programme 2011/12 Financial Year
-Implementation of the Budget of 2011/12 Financial Year
-Implementation of the Budget 2011/12 Financial Year

3. Introduction The purpose of the presentation is to brief Standing
Committee on Appropriations on the Departmental Financial Expenditures

4. Summary of Expenditure estimates 2010/11 -2011/12

5. REQUEST FOR ROLL-OVER OF FUNDS FROM 2010/11-2011/12 FINANCIAL YEAR

6. Expenditure Outcome Classified per programme 2010/11 FY

7. Expenditure Outcome per Economic Classification 2010/11 FY

8. Reasons for under expenditure
Posts not filled on time
Protects implemented late
Current expenditure related to employees
Protects not completed during the year: Community Work Programme
Delivery delays on ordered furniture and equipments

9. Measures to improve expenditure trends
COMPENSATION OF EMPLOYEES
92% (138 of 150) SMS posts have been filled, and 12 posts will be filled
by the end of June 2011 which will normalise the expenditure trends.
PROJECT MANAGEMENT APPROACH
The project management approach has been enforced at the level of the
budget thereby linking the budget to performance management. All
approved projects have been allocated budgets linked to the various
milestones, this will ensure that expenditure movement is in accordance
with the projections.

10. Measures to improve expenditure trends cont..
PROCUREMENT PLAN
A procurement plan has been developed linked to the project management
approach, the timeframes for projects synchronised with the procurement
requirements to ensure that the service providers are in place when required
and department can focus on the implementation phase.
MONITORING AND EVALUATION
The Department has put monitoring measures of evaluating the expenditure
trends on monthly basis to ensure that programs spend according to their monthly
projections, this is linked to the monthly progress reporting on projects.
Provincial Support Technical Unit (PSTU) is in place to assist in protect monitoring

11. Financial Resources per programme 2011/12

12. Implementation of the Budget 2011/12 Financial Year
Compensation of Employees:
The departments will spend R233 million on salaries for 2011/12 FY.
Good and Services:
An amount of R649 million will be spent on goods and services while R243 million is ear marked for Community Work Programme (CWP) and R192 million is allocated for Special Purpose Vehicle (SPV) therefore R214 million is for operational budget to implement some of the following projects:
Ensuring that the developed municipal turnaround strategies are implemented and that there is consistent monitoring of progress in this regard.
Addressing the municipal financial and administration problems to achieve 100% unqualified audit opinions by 2014.
Strengthening the Minister’s regulatory powers.
Strengthening the ward committees capacity after the local government elections for 2011
The finalization of Green Paper on Cooperative Governance
Facilitation of local participatory governance and
Improving the integrated development plan across the three spheres of government

13. Implementation of the Budget 2011/12 Financial Year continue…
Good and Services:
Department Traditional affairs will focus on finalizing policies on traditional cultural
practices such as initiation schools and “ukuthwala” with a view to regulate and
development of the assessment instrument for the evaluation of the state and governance
in the areas of Traditional Affairs in all the affected Provinces.
Payments for Capital Assets:
The department allocated R19.7 million on capital assets R5.6 million is earmarked for
Community Work Program (CWP) while the rest of R14.1 million will be spent on
upgrading information communication technology infrastructure and on software
licenses used within the department. Other funds will be used for office furniture on
newly appointed staff.

14. Implementation of the Budget 2011/12 Financial Year continue
Transfers and Subsidies:
The department is responsible for managing and transferring the Municipal Infrastructure Grant (MIG), Municipal Systems Improvement Grant (MSIG) and Equitable Share to municipalities, support will be provided to municipalities on the
implementation of MIG and MSIG projects.
The allocation for disaster relief for 2011/12 amounts to R314 million, this amount is earmarked to put systems in place to provide immediate relief for disaster.
As part of department job creation initiative, the annual work opportunities target is participants in historically marginalised communities through Community Work Programmes (CWP) and Professionals will be appointed to provide technical support to low capacity and weak municipalities from Special Purpose Vehicle (SPV) to enhance infrastructure delivery.

15. THANK YOU