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PRESENTATION TO THE PORTFOLIO COMMITTEE OF MINERAL RESOURCES.

STATEGIC PLAN 2014/19

DATE: 8 JULY 2014

Programme 1.1 - Financial Administration

Programme 1.1: Financial AdministrationPurpose

• Financial Administration is a sub-programme under

programme 1: Administration.

• The purpose of this programme is to enable the Department

of Mineral Resources to deliver on its mandate by providing

strategic management and administrative support to the

Ministry and the department.

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Presentation Outline1. The details on the budget that support the strategic

plan of the department is outlined on pages 25 – 27 of the strategic plan:

Budget Summary 2014/2015 Expenditure estimates per programme Expenditure estimates per economic classification

2. The Financial Administration Branch Strategic objectives and targets are outlined on pages 42-48 of the strategic plans

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Overall Department BudgetAUDITED OUTCOME

Final Appropriation

Medium-term allocation (MTEF 2014)

2009/10R’000

2010/11R’000

2011/12R’000

2012/13R’000

2013/14R’000

2014/15R’000

2015/16R’000

2016/17R’000

853 845 994 697 1 029 435 1 173 642 1 393 849 1 471 291 1 599 246 1 664

061

• Departmental expenditure increased from R853.845 million in 2009/10 to R1.174 billion in 2012/13.

• The budget for the 2013/14 financial year was R1.394 billion and is expected to increase by an average growth rate of 6.7% to R1.66 billion in 2016/17.

• The increase is attributed to increased funding for rehabilitation of derelict and ownerless mines and the specialised technical skills required for the implementation of the National Environmental Management Act.

Budget per programme

Programmes 2013/2014

MTEF 20142014/15 2015/16 2016/17

R’000 R’000 R’000 R’000

Administration 310,144 284,174

296,771

314,525

Promotion of Mine Safety and Health 153,998

167,970

177,729

188,934

Mineral Regulation 205,521

231,365

245,198

259,960 Mineral Policy and Promotion 724,186

787,782

879,548

900,642

Totals 1,393,849 1,471,291 1,599,246 1,664,061

Programmes 2013/2014

MTEF 20142014/15 2015/16 2016/17

R’000 R’000 R’000 R’000

Administration 310,144 284,174

296,771

314,525 Programme budget for 2013/14 was R310 million and is expected

to increase at an average growth of 1.5% to R314.5 million in 2016/17.

The spending focus over the MTEF:

•Staff development initiatives , including programmes to attract

skills in the mining inspectorate.

•ICT services and recruitment expenses

Programmes 2013/2014

MTEF 20142014/15 2015/16 2016/17

R’000 R’000 R’000 R’000

Promotion of Mine Safety and Health 153,998

167,970

177,729

188,934 The budget for the 2013/14 financial is expected to increase at an

average growth rate of 5.5 % to R188.9 million in 2016/17.

The spending focus over the MTEF:

To ensure compliance with the Mine health and Safety Act (1996) by conducting inspections, audits, inquiries and investigations.

To further enhance the capacity to conduct inspections.

Programmes 2013/2014

MTEF 20142014/15 2015/16 2016/17

R’000 R’000 R’000 R’000

Mineral Regulation 205,521

231,365

245,198

259,960 The Programme budget for the 2013/14 financial year was R154 million and is expected to increase at an average growth rate of 9.2 % to 260 million in 2016/17.

The spending focus over the MTEF:

Improving the process of issuing mining rights and permitsIncrease on compensation of employees and related goods and services for the implementation of National Environmental Management Act (1998).

Programmes 2013/2014

MTEF 20142014/15 2015/16 2016/17

R’000 R’000 R’000 R’000

Mineral Policy and Promotion 724,186

787,782

879,548

900,642 The Programme budget for 2013/14 was R724.2 million and is expected

to increase at an average growth of 8.3 % to R900.6 million in 2016/17.

The spending focus over the MTEF:

Promote the mineral sector and strengthening the regulatory framework that governs both the mining and petroleum sectors.

Assisting SMME’s to promote mineral development.

Budget per Economic Classification

Per Economic Classification

2013/2014

MTEF 20142014/15 2015/16 2016/17

R’000 R’000 R’000 R’000

Compensation of employees 435,288

476,757  

505,651  

539,022  

Goods and services249,931

265,582

278,779  

356,543  

Transfer and subsidies

692,739

717,934   803,341  

756,413  

Capital assets15,881

11,018  

11,475  

12,083  

Totals 1,393,849 1,471,291 1,599,246 1, 664,061

FINANCIAL ADMINISTRATIONBranch Strategic Objectives and Priorities

Strategic objective • To ensure system availability and processing of

request within the required time frames• Improve on financial management controls and

implement the ICT governance framework. • Manage budget and asset effectively and reduce

irregular expenditure• Reduce internal and external audit findings and

implement risk management strategies and promote compliance .

Stakeholder Perspective:Provide efficient services to internal and external customers

• System availability

• Service Level Agreement are achieved

• Stakeholder Customer satisfaction

• Regulatory financial reports delivered on schedule

• Suppliers invoices paid within 30 days

Internal processes:Implement Improved Processes and systems

• Improved Financial Management Maturity

• Implementation of Master Systems Plan which has

been developed to support the Strategic Objectives of

the department through ICT.

Financial Perspective :Manage Financial Resources

• Ensuring strategic alignment of the budget

• Avoiding irregular expenditure

• Reduction of assets disposed prior to the end of its

lifecycle due to theft, negligence.

Conclusion

• The department is committed to ensure effective, efficient and economic utilisation of resources.

• Over the past four years the Department spending remained within the budget through cost containment measures and as a result under spending was less than two per cent per year on average over the period.

• The oversight structures available will continuously monitor the implementation of the plans in line with the allocated budget.