1. CONDITIONAL GRANT EXPENDITURE 3RD QUARTER 2009-2010 Select Committee on Appropriations Parliament of the Republic of South Africa 19 May 2010

2. CONDITIONAL GRANT FOR COMMUNITY LIBRARIES Introduction The 2009/2010 marks the third year of the Conditional Grant funding received by the department for community libraries. In implementing the grant, the department works in partnership with the local municipalities who serve as implementing agents for some of the identified and prioritised projects. The department signed transfer payment Memoranda of Agreement with the 28 municipalities of the Western Cape for implementation of projects that include: –Staffing of public libraries –Literacy projects –Maintenance / upgrading projects The department also signs Memorandum of Understanding with Municipalities with regard to implementation of the Rural Library Connectivity Project and (ICT) projects.

3. DATA ON TRENDS IN ALLOCATION, TRANSFERS AND ACTUAL EXPENDITURE Received allocations Transfers to municipalities Other Expenditure Actual expenditure 2007/08 R16 740 000 R15 534 507R1 113 493 R16 648 000 (99.5%) 2008/09 R31 434 000 R24 853 265R6 483 735 R31 337 000 (99.7%) 2009/10 R 41 073 000 R31 452 000R9 620 996 R41 072 996.30 (100%)

4. DATA ON TRENDS IN ALLOCATION, TRANSFERS AND ACTUAL EXPENDITURE Allocation criteria applied for the three financial years. % of total population of a municipality in relation to the total population of the province (60% weight) % of total circulation of libraries in a municipality in relation to the total circulation in the province (30% weight) % of libraries in a municipality in relation to the number or libraries in the province (10% weight) In 2008/09 an increase of 8.5% was added to the staff allocation of 2007/08. In 2009/10, an increase of 10% was added to the staff allocation of 2008/09. In addition, requests for literacy, maintenance and upgrading projects were considered.

5. CONDITIONAL GRANTS FOR COMMUNTIY LIBRARIES: ALLOCATION TRENDS IN ALLOCATION Total Provincial budget for 2009/10: R41 073 000 Total transfers = 76.6% share of the provincial allocation (R31 452 000) for additional staff, literacy, maintenance and upgrading projects. Centrally managed projects are the establishment of mobile book trolleys, purchasing of library material, Rural Library Connectivity Project and Grant management – (23.4% balance of the funding).

6. CONDITIONAL GRANTS FOR COMMUNITY LIBRARIES PROJECTS FOR 2009/10 (R41 073 000) ALLOCATION PER PROJECT R27 642 300: 287 staff appointed with conditional grant funding in libraries R839 000: 40 maintenance projects undertaken in libraries R2 850 700: Upgrading projects in 8 libraries R120 000: 35 literacy projects implemented in libraries R855 000: 5 Additional sites established (R785 000 used on library material for new and existing sites) R1 515 000: 20 rural public libraries received ICT infrastructure, access to the internet and a library management system. Maintenance of 24 sites with installed infrastructure is continuous.

7. CONDITIONAL GRANTS FOR COMMUNITY LIBRARIES PROJECTS FOR 2009/10 (41 073 000) ALLOCATION PER PROJECT R 4 800 000: 6 000 copies of updated reference books will be bought for all libraries, (R2 000 000 of the allocation is for youth reference material) R634 000: 18 000 copies of indigenous language (Afrikaans and isiXhosa) books for the youth will be bought for all libraries. The processes that lead to the delivery and payment of books are continuous throughout the financial year R10 000: 600 copies of literacy books to be bought for all libraries R1 807 000: 8 staff appointed to co-ordinate and manage Conditional Grant projects

8. BUSINESS PLAN CASH FLOW 09/10 Q1Q2Q3Q4 TOTAL RECEIVED by END OF 3 RD QUARTER PERCENTAGE of grant received by end of 3 rd Q R1 896 096R12 789 177R11 453 059 R14 934 668 R26 138 332 63, 64% received by end of Q3

9. TRENDS IN ALLOCATION 3 RD QUARTER BUDGET ALLOCATION RECEIVEDTRANSFERS OTHER EXPENDITURE ACTUAL EXPENDTIURE PERCENTAGE SPENT BY END OF 3 RD Q R41 073 000R26 138 332R17 067 850R4 118 265R21 186 115 81% of total received spent by end of Q3

10. REASONS FOR UNDER EXPENDITURE in 3 rd Quarter Delays in delivery of mobile book trolley (supplier) Delays in delivery of library material (supplier) Cost of ICT equipment less than budgeted Cost of mobile book trolleys less than budgeted Note: Cost savings spent on books during the fourth quarter

11. ASSESSMENT OF MONITORING CAPACITY OF 2009/10 The department monitoring function through scheduled official visits. 1 478 monitoring visits were undertaken during this financial year. Individual municipalities costed business plans submitted with the signed Memoranda of Agreement (MOA’s). Monthly Finance Focus meetings to keep track on the conditional grant expenditure trends. BAS monthly expenditure report to confirm under/over expenditure against cash flow. PALS selection and payment modules printouts to monitor expenditure on library material.

12. COMPLIANCE WITH MONTHLY REPORTING Monthly expenditure reports are submitted on a standard template designed to provide required information for analysis. Standard follow up procedures are used e.g., telephone calls, e-mail. Formal letters are written to non-compliant municipalities when reports are not submitted. Monitoring visits to non-compliant municipalities as well as those who request assistance are undertaken.

13. Conclusion In 07/08 99.5% of the grant was spent In 08/09 99.7% of the grant was spent In 09/10 100% of the grant was spent