1. EXPENDITURE OUTCOMES AS AT 31 MAY 2011
PRESENTER: MS LERATO THWANE
DATE: 14 JUNE 2011

2. Section 32 of the PFMA and Quarterly Financial Reports
Section 32 of the PFMA refers to the publishing requirements by National Treasury of a monthly statement of actual revenue and expenditure with regards to National Revenue Fund. In order to assist National Treasury in doing this, departments have to provide information in a prescribed format and in line with timeframes as per practice notes that National Treasury issues. The monthly requirement is that expenditure information is reported to National Treasury in a prescribed format. The quarterly requirement is for interim financial statements to be submitted also in a prescribed format at the end of each quarter. The following slides present the current year’s expenditure information and the analysis of expenditure trends as at 31 May 2011; this information is presented to National Treasury on a monthly basis in order to feed into their system to comply with section 32 of the MFMA.

3. EXPENDITURE PER PROGRAMME AND TRANSFERS

4. EXPENDITURE PER ECONOMIC CLASSIFICATION

5. EXPENDITURE DETAIL PER PROGRAMME
PROG 1 ADMINISTRATION
May
EXPENSES 31 MAY 2011
BUDGET
AVAILABLE BUDGET
% SPEND
TOTAL I COMPENSATION OF EMPLOYEES
15,333,195
90,885,000
75,551,805
17%
TOTAL I GOODS AND SERVICES
4,952,046
117,898,000
112,945,954 4%
TOTAL I PROVINCIAL & LOCAL GOVERNMENTS
768
100,000
99,232 0%
TOTAL I MACHINERY AND EQUIPMENT
8,398
3,686,000
3,677,602
TOTAL:
20,299,538
212,569,000
192,269,462
10%
PROG 2 POLICY, RESEARCH & KNOWLEGE MANAGEMENT
I PAYMENS
EXPENSES 31 MAY 2011
BUDGET
AVAILABLE BUDGET
% SPEND
TOTAL I COMPENSATION OF EMPLOYEES
3,409,110
20,501,000
17,091,890
16%
TOTAL I GOODS AND SERVICES
618,077
18,545,000
17,926,923 3%
TOTAL I MACHINERY AND EQUIPMENT
774,953
6,960,000
6,185,047
11%
TOTAL:
4,802,140
46,006,000
41,203,860
10%

6. Policy, Research and Knowledge Management Support:
Variance analysis
Administration:
The total programme spending was projected to be on 16% by 31 May 2011.
Compensation of employees: The expenditure is currently at 17 % against the projection of 16 %, which is slightly over with 1 per cent but still within the benchmark.
Goods and services: The actual expenditure reflects 4 % spending against the 18% projected. The reasons for this is that the implementation of projects have not yet started as planned.
Capital payments: The expenditure reflect 0 % versus 16% projected, the under-spending is mainly due to the procurement processes for office furniture which are still underway.
Policy, Research and Knowledge Management Support:
The total programme spending was projected to be on 16% by 31 May 2011
Compensation of employees: The expenditure is currently at 16 % against the projection of 16 %
Goods and services: The actual expenditure reflects 3 % spending against the projected 19% spending. The cost drivers according to the projected expenditure are computer services, consultants, contractors, and travel and subsistence which most are under spending, this is due to the appointment of service providers which is still in process.
Capital payments: The expenditure reflect 11 % versus 12% projected which is within the benchmark

7. EXPENDITURE DETAIL PER ROGRAMME
PROG 3 GOVERNANCE&INTERGOV RELATNS
I PAYMENTS
EXPENSES 31 MAY 2011
BUDGET
AVAILABLE BUDGET
% SPEND
TOTAL I COMPENSATION OF EMPLOYEES
2,546,126
19,490,000
16,943,874
13%
TOTAL I GOODS AND SERVICES
186,966
12,347,000
12,160,034 2%
TOTAL I PROVINCIAL & LOCAL GOVERNMENTS
-657,000
34,107,901,000 0%
TOTAL I DEPARTMENTAL AGENCIES & ACCOUNTS
6,371,500
63,968,000
57,596,500
10%
TOTAL I NON PROFIT INSTITUTIONS (NPI)----
10,164,000
TOTAL O DPG:GOVERNANCE&INTERGOV RELATNS
8,447,592
34,213,870,000
34,205,422,408
0.02%
PROG 4 DISASTER RESPONSE MANAGMNT
I PAYMENTS
EXPENSES 31 MAY 2011
BUDGET
AVAILABLE BUDGET
% SPEND
TOTAL I COMPENSATION OF EMPLOYEES
1,540,267
18,473,000
14,178,001 8%
TOTAL I GOODS AND SERVICES
1,014,857
24,555,000
23,540,143 4%
TOTAL I PROVINCIAL & LOCAL GOVERNMENTS
775,000,000 0%
TOTAL I MACHINERY AND EQUIPMENT
3,144,000
TOTAL O DPG:DISASTER RESPONSE MANAGMNT
2,555,124
821,172,000
818,616,876
0.3%

8. National Disaster Management Centre:
Variance analysis
Governance and IGR:
The total programme spending was projected to be on 16% (excl Equitable Share) by 31 May 2011
Compensation of Employees: The expenditure is currently at 13% versus the 16% projected, mainly due to few posts that are still vacant.
Goods and Services: The expenditure on their operational budget stands at 2%, which is far below the bench mark of 16%. This is mainly due to the implementation of their project plans which are stilI at initial stages and the procurement of services for the same.
National Disaster Management Centre:
The total spending was projected to be at 16% by 31 May 2011
Compensation of employees: The expenditure is currently at 8% against the projection of 15%, this is mainly due to posts that are still vacant and not filled after the sub-programme was elevated to a programme level.
Goods and services: The actual expenditure reflect 4% spending against the projected 18% spending. The under-spending is as a result of not having the dedicated programme manager to manage the spending trends.
Capital payments: The expenditure reflects 0% versus 9.5% projected, the under-spending is mainly due the fact that the office equipments that will upgrade the state of Disaster infrastructure is yet to be procured.
Transfers and subsidies: The allocation of 775 million that has been appropriated to National Disasters if incurred and declared.

9. EXPENDITURE DETAIL PER ROGRAMME
PROG 5 PROV & MUN GOVT SYSTEMS
I PAYMENTS
EXPENSES 31 MAY 2011
BUDGET
AVAILABLE BUDGET
% SPEND
TOTAL I COMPENSATION OF EMPLOYEES
5,183,999
19,362,000
16,541,206
26%
TOTAL I GOODS AND SERVICES
419,536
9,500,000
9,339,823 4%
TOTAL I PROVINCIAL & LOCAL GOVERNMENTS
219,420,000 0%
TOTAL I MACHINERY AND EQUIPMENT
3,144,000
TOTAL O DPG:PROV & MUN GOVT SYSTEMS
5,603,535
251,426,000
245,822,465 2%
PROG 6 INFRA & ECONOMIC DEVELOPMENT
I PAYMENTS
EXPENSES 31 MAY 2011
BUDGET
AVAILABLE BUDGET
% SPEND
TOTAL I COMPENSATION OF EMPLOYEES
3,724,054
25,590,000
21,865,946
15%
TOTAL I GOODS AND SERVICES
40,643,769
252,945,000
212,301,231
16%
TOTAL I PROVINCIAL & LOCAL GOVERNMENTS
11,443,505,000 0%
TOTAL I PUBLIC CORPORATIONS AND PRIVATE ENTERPRISES
192,061,000
TOTAL I HOUSEHOLDS
41,064,091
388,177,000
347,112,909
11%
TOTAL I MACHINERY AND EQUIPMENT
5,600,000
TOTAL O DPG:INFRA & ECONOMIC DEVELOPMENT
85,431,914
12,307,878,000
12,222,446,086
0.6%

10. Variance analysis Provincial and Municipal Govt Systems:
The total spending was projected to be at 16% by 31 May 2011
Compensation of Employees: The expenditure is currently at 26% against the projection of 16%, this is mainly due to provincial technical unit posts.
Goods and Services: The actual expenditure reflect 4 % spending against the projected 17% spending. The under-spending is due to projects not yet started as planned.
Capital payments: The expenditure reflects 0% versus 8% projected, the under-spending is mainly due the procurement process for the equipment for new officials that is still underway.
Infrastructure Economic Development:
The total programme spending was projected to be on 16% by 31 May 2011
Compensation of Employees: The expenditure is currently at 15%, this reflects a small margin of variance which is still within the projected spending.
Goods and Services: The expenditure is on 16% versus 18%, which is nearly within the target spending, this spending patterns are being monitored in this regard.
Households: The expenditure is on 11% as projected by the Community Works Program for wage cost.

11. EXPENDITURE DETAIL PER ROGRAMME
PROG 7 TRADITIONAL AFFAIRS
I PAYMENTS
EXPENSES 31 MAY 2011
BUDGET
AVAILABLE BUDGET
% SPEND
TOTAL I COMPENSATION OF EMPLOYEES
5,335,428
38,561,000
33,225,572
14%
TOTAL I GOODS AND SERVICES
1,437,865
22,703,000
21,987,838 6%
TOTAL I DEPARTMENTAL AGENCIES & ACCOUNTS
5,500,000
22,150,000
16,650,000
25%
TOTAL I MACHINERY AND EQUIPMENT
7,999
355,000
347,001 2%
TOTAL O DPG:TRADITIONAL AFFAIRS
12,281,291
83,769,000
75,014,633
15%

12. Variance analysis Traditional Affairs:
The total programme spending was projected to be on 16% by 31 May 2011
Compensation of employees: The expenditure is currently at 14% against the projection of 16%, this is mainly due to just a few outstanding appointments.
Goods and services: The actual expenditure reflects 6% versus 16% projected. The under spending is mainly due to the projects and committee meetings not yet started as planned.
Capital payments: The expenditure reflects 2% versus 25% projected due to procurement processes that are still in process, there are some orders that have not been paid.
Transfers and subsidies: The expenditure reflects a 25 % transfer of the CRL commission as projected.

13. THANK YOU