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Gauteng Provincial Preliminary Expenditure for 2013 and Gauteng Treasury Spending Gauteng Provincial Treasury: Head of Department

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Gauteng Provincial Preliminary Expenditure for 2013 and Gauteng Treasury Spending. Gauteng Provincial Treasury: Head of Department. Table of Contents. Provincial equitable share and conditional grant receipts and expenditure Cash allocations - PowerPoint PPT Presentation

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Page 1: Gauteng Provincial Preliminary Expenditure for 2013 and Gauteng Treasury Spending

Gauteng Provincial Preliminary Expenditure for 2013 and Gauteng Treasury Spending

Gauteng Provincial Treasury:

Head of Department

Page 2: Gauteng Provincial Preliminary Expenditure for 2013 and Gauteng Treasury Spending

Table of Contents • Provincial equitable share and conditional grant receipts and

expenditure • Cash allocations• Ring-fenced funds • Summary of funds requested against budget• Summary of GPG Revenue Collections• Summary of GPG Expenditure (Preliminary outcome)• Recommendations• GPT Expenditure estimates (economic classification)• GPT Expenditure estimates (per programme) • GPT Non Financial Performance

Page 3: Gauteng Provincial Preliminary Expenditure for 2013 and Gauteng Treasury Spending

Provincial Equitable Share and Conditional Grants Receipts YTD

  1 2 3 4=1-2 5=4/1

Period National Treasury Transfers (ES,

CG) per payment schedule

 R’000’

Actual Funds Requisitioned by

GPG Departments

 R’000’

Projected Expenditure

   

R’000’

Variance     

R’000’

Variance     

%

First Quarter 17,556,667 18,731,840 17,502,367 -1,175,173 -6.69

Second Quarter 17,822,725 18,015,944 18,597,511 -193,219 -1.08

Third Quarter 17,733,301 20,275,470 18,566,358 -2,542,169 -14.34

Fourth Quarter 17,744,918 17,663,371 16,633,374 81,547 0.46

Total 70,857,611 74,686,625 71,299,610 -3,829,014 -5.40

 Own Revenue

 3,946,259

 -

 -

 3,946,259

 1.00

GRAND TOTAL 74,803,870 74,686,625 71,699,610 117,245 0.16%

Page 4: Gauteng Provincial Preliminary Expenditure for 2013 and Gauteng Treasury Spending

Provincial Equitable Share and Conditional Grants

Receipts YTD…

• At year end, a total of R74.8bn was received by the province.

– Of which R70.9bn was transfers from national in the form of equitable share and conditional grants, and

– Own revenue collections by the province amounted to R3.95bn.

• The preliminary outcome of GPG departments is at R71.7bn against national transfers. This means that without provincial own revenue, the province would have largely overspent.

• An amount of R582 000 for Mass Sport and Recreation Grant under GDSACR was not transferred by the National Department of Sport and Recreation due to their internal challenges.

• Provincial own revenue plays a significant role in funding the province.

Page 5: Gauteng Provincial Preliminary Expenditure for 2013 and Gauteng Treasury Spending

Ring-fenced funds- end of March 2013

Vote Departments Infrastructure (Earmarked

Equitable Share) 

R’000’

Conditional Grants  

R’000’

Total   

R’000’ 1 Office of the Premier - - -2 Provincial Legislature - - -3 Economic Development - - -4 Health - 388,202 388,2025 Education - 61,348 61,3486 Social Development 4,019 3 4,0217 Local Government and Housing 3,418 2,321 5,7398 Roads and Transport 34 8,768 8,801  GMA (Gautrain Rapid Link Project) - - -

9 Community Safety - - -10 Agriculture and Rural Development 2,310 286 2,596

11 Sport, Arts, Culture and Recreation - 1,875 1,875

12 Finance - - -13 Gauteng Treasury - - -14 Infrastructure 36,166 2,196 38,362  TOTAL 45,947 464,998 510,945

Page 6: Gauteng Provincial Preliminary Expenditure for 2013 and Gauteng Treasury Spending

Funds requested against budget - YTD

Vote Department Total Voted Funds R’000’

Funds Requested Financial Year-

EndR’000’

Variance R’000’

Percentage Requested

YTD

1 Office of the Premier 249,810 249,810 0 100%2 Provincial Legislature 476,305 476,305 0 100%3 Economic Development 874,412 874,412 0 100%4 Health 27,191,294 27,191,594 0 100%5 Education 28,500,245 28,500,245 0 100%6 Social Development 2,543,918 2,543,918 0 100%7 Local Govt and Housing 4,737,125 4,737,125 0 100%8 Roads and Transport 4,138,957 4,138,957 0 100%  GMA (Gautrain) 1,598,711 1,598,711 0 100%

9 Community Safety 436,798 436,798 0 100%

10 Agric and Rural Develop 517,659 517,659 0 100%11 Sport, Arts, Culture and

Recreation437,938 437,356 582 99.87%

12 Finance 1,333,265 1,333,265 0 100%13 Gauteng Treasury 238,610 238,610 0 100%14 Infrastructure 1,411,281 1,411,281 0 100%

  TOTAL 74,687,207 74,686,625 582 100%

Page 7: Gauteng Provincial Preliminary Expenditure for 2013 and Gauteng Treasury Spending

Net Interest payments/receipts on CPD

Net Interest Position- Comparative

Amount Q1

R’000’Q2

R’000’Q3

R’000’Q4

R’000’Total YTD

R’000’

Interest Paid - - - - -

Interest Received 44,527 44,779 41,079 47,105 177,489

Net Gain/Loss 44,527 44,779 41,079 47,105 177,489

Average CPD rate (Dr/Cr)

        5.02%

Page 8: Gauteng Provincial Preliminary Expenditure for 2013 and Gauteng Treasury Spending

Summary of Revenue collected

GPG Department

2011/12 FY collection (Audited)

Preliminary YTD (2012/13) Collection

March 2013

Adjusted Appropriation

(2012/13)

YTD (2012/13) Collection

March 2013 % contribution

YTD Collection less Adjusted Appropriation

R'000 R'000 R'000 % R'000

Office of the Premier 465 277 246 112.60 31

Economic Development 614,726 721,756 663,762 108.74 57,994

Health Department 449,362 476,961 471,551 101.15 5,410

Education 44,452 42,705 46,675 91.49 -3,970

Social Development 4,143 5,488 3,494 157.07 1,994

Local Government & Housing 20,074 13,135 5,317 247.04 7,818

Roads and Transport 2,283,758 2,459,790 2,406,856 102.20 52,934

Community Safety 13,781 20,609 12,681 162.52 7,928

Agriculture and Rural Development 838 1,631 1,566 104.15 65

Sport, Arts, Culture & Recreation 295 183 365 50.14 -182

Finance 2,572 2,308 1,813 127.30 495

Provincial Treasury 164,758 187,828 150,000 125.22 37,828

Infrastructure Development 15,636 13,636 15,000 90.91 -1,364

Total 3,614,860 3,946,307 3,779,326 104.42 166,981 Source: IYM March 2013 and Adjusted Estimates of Provincial Revenue & Expenditure 2012Red Highlighted: Under collection as at end of March 2013

Page 9: Gauteng Provincial Preliminary Expenditure for 2013 and Gauteng Treasury Spending

Summary of Collected Revenue

• Total own revenue collection as at end of March 2013 amounted to R3.946 billion (This amounts to 104.42%).

• The under collection is mostly from non revenue generating departments

• The GPG has exceeded its adjusted appropriation by 4.42% and exceeded its targeted collection by R166.981 million.

• Most of the GPG departments exceeded their 2012/13 financial year adjusted appropriation except GDE, DID and SACR that have under collected.

• Major collectors performed as follows:– DED estimated to collect R663.762 million collected R721.756 million.– GDoH has collected R476.961 million or 101.15% of their estimate of R471.551

million.– DRT adjusted appropriation was R2.406 billion but managed to collect R2.459

billion or 102.20%. – GPT has collected R187.828 million or 125.22% of their adjusted appropriation.

The Department adjusted upwards by R95 000 from a main appropriation of R55 000.

Page 10: Gauteng Provincial Preliminary Expenditure for 2013 and Gauteng Treasury Spending

Summary of Preliminary GPG Expenditure

DepartmentOriginal Budget

Allocation

Adjustments Increase/

(Decrease)

Adjusted Budget

Total Expenditure

Actual Expenditure (Against Adj

Budget)

Outcome -

Under/ (Over)

R’000’ R’000’ R’000’ R’000’ % R’000’

Office of the Premier 236,734 13,076 249,810 238,369 95% 11,441Gauteng Provincial Legislature 455,000 21,305 476,305 465,232 98% 11,073Economic Development 912,008 (37,596) 874,412 845,278 97% 29,134Health 24,519,336 2,671,958 27,191,294 26,962,073 99% 229,221Education 27,150,751 1,350,073 28,500,824 28,250,101 99% 250,723Social Development 2,490,492 53,426 2,543,918 2,525,066 99% 18,852Local Government and Housing 4,737,125 0 4,737,125 4,631,036 98% 106,089Roads and Transport 4,363,790 1,373,878 5,737,668 5,568,287 97% 169,381Community Safety 435,946 852 436,798 415,705 95% 21,093Agric. and Rural Development 493,976 22,503 516,479 516,853 100% (374)

Sport, Arts, Recr and Culture 392,837 45,101 437,938 433,718 99% 4,220

Finance 1,322,700 10,565 1,333,265 1,305,414 98% 27,851Gauteng Provincial Treasury 428,934 (190,324) 238,610 225,202 94% 13,408Infrastructure Development 1,371,052 40,229 1,411,281 1,378,114 98% 33,167

TOTAL 69,310,681 5,375,046 74,685,728 73,760,448 99% 925,280

Page 11: Gauteng Provincial Preliminary Expenditure for 2013 and Gauteng Treasury Spending

Summary of GPG Expenditure

• The main budget was adjusted upwards by R5.4 billion, from R69.3bn to R74.7bn.

• The increase was mainly for accrual payments in Health and ICS for GPG departments, and decentralisation of functions from Finance to GPG departments.

• Preliminary expenditure is at R73.7bn, under spending by R925mil. R500 million of the R925.3 million is commitments and invoices that could not be processed by the end of the financial year.

• Gauteng Provincial Treasury received requests for rollovers from GPG departments amounting to R500 million which corresponds to R510.945 million available cash and has assessed the request as part of the established budget processes.

• The difference of R425.3 million under-spending is just on paper because it is accounted for by suspense accounts, surrenders and BAS transaction processing rules which causes disjuncture between under-spending and available cash.

Page 12: Gauteng Provincial Preliminary Expenditure for 2013 and Gauteng Treasury Spending

Summary of GPG Expenditure…

• Almost all GPG departments are showing a slight under-spending which can be explained by commitments and invoices that could not be processed except GDARD which has overspent by R374 thousands

• The total provincial wage bill was at R40.3bn, from which the province spent R40 billion, with R280.6mil remaining unspent.

• Under goods and services: the province overspent by R528 million, mainly due to funding pressures in education and health;

Page 13: Gauteng Provincial Preliminary Expenditure for 2013 and Gauteng Treasury Spending

2012/13 Preliminary Infrastructure Expenditure

DepartmentMain

Budget 2012/13

Adjusted Budget 2012/13

Actual Expenditure at end of March 2013

% Expenditure

Outcome

Vote 04: Health 1 484 046 1 481 422 1 243 059 84% 238 363

Vote 05: Education 1 245 336 1 585 336 1 654 737 104% -69 401

Vote 06: Social Development 95 426 125 424 121 401 97% 4 023

Vote 07: Local Government And Housing 4 058 778 4 058 778 4 052 439 99.8% 6 339

Vote 08: Roads And Transport 1 244 980 1 713 477 1 561 128 91% 152 349

Vote 10: Agriculture And Rural Development

4 000 10 000 10 337 103% -337

Vote 14: Infrastructure Development 127 363 127 363 87 983 69% 39 380

Grand Total 8 259 929 9 101 800 8 731 084 96% 370 716

Page 14: Gauteng Provincial Preliminary Expenditure for 2013 and Gauteng Treasury Spending

2012/13 Preliminary Infrastructure Expenditure

• Infrastructure budget was adjusted upwards by R 841.8 million to R9.1 billion.

• GDE budget adjusted upward by R340 million and DRT adjusted upwards by R439 million.

• At the end of the financial year, an expenditure of R8.7 billion (96%) is recorded with an under-expenditure outcome of R370.7 million.

• DoH, DRT and DID recorded a notable under-expenditure whilst the GDE, GDARD recorded an over-expenditure outcome

Page 15: Gauteng Provincial Preliminary Expenditure for 2013 and Gauteng Treasury Spending

2012/13 Preliminary Infrastructure Expenditure

• In 2012/13 financial year, various alternative delivery initiatives were introduced including amongst the others;– utilisation of alternative delivery material and contracting

approaches. • At the end of the financial year, an expenditure of R8.7 billion

(96%) is recorded with an under-expenditure outcome of R370.7 million which is a marked improvement taking into account commitments and invoices that could not be accommodated by the end of the financial year.

• There is a slight improvement on the alignment of planning with the budget cycle, however some projects and programmes have been affected by the long turn-around on SCM. Gauteng Provincial treasury is currently working a way to improve supply chain management processes for all the infrastructure departments.

Page 16: Gauteng Provincial Preliminary Expenditure for 2013 and Gauteng Treasury Spending

2012/13 Preliminary Conditional Grant Expenditure

Conditional GrantAnnual Grant

Allocation

Adjustments

Increase/ (Decrease)

Adjusted Annual Budget

Transfers from

National

Amount transferred to Dept.

Total Actual Exp.

Actual YTD Exp.

Outcome (Over) / Under

R’000’ R’000 R’000 R’000’ R’000 R’000’ % R’000’Agriculture and Rural Dev. Comprehensive Agric. Support Prog. 48 016 12 458 60 474 48 016 60 474 60 474 100% -

Ilima/Letsema Projects grant 16 798 423 17 221 16 798 17 221 17 221 100% -Land Care Programme 6 246 - 6 246 6 246 6 246 6 246 100% -Education Dinaledi Schools Grant 20 139 - 20 139 20 139 20 139 20 139 100% -HIV & Aids (Life Skills Education) 29 147 - 29 147 29 147 29 147 19 525 67% 9 622

National School Nutrition Prog. 548 690 70 836 619 526 548 690 619 526 587 466 95% 32 060

Tech. Secondary Schools Recap. 25 000 23 524 48 524 25 000 48 524 39 312 81% 9 212

Health Comprehensive HIV & Aids 1901 293 - 1901 293 1901 293 1901 293 1905 215 100% 3 922Health Infrastructure 110 361 - 110 361 110 361 73 818 73 818 67% 36 543Health Prof. Train & Dev. 725 310 - 725 310 725 310 685 147 685 147 94% 40 163Hospital Revitalisation 795 439 - 795 439 795 439 411 139 411 139 52% 384 300National Health Insurance 31 500 - 31 500 31 500 8 068 8 068 26% 23 432National Tertiary Services 3044 567 - 3044 567 2790 854 2682 687 2682 687 88% 361 880Nursing Colleges & Schools 12 480 - 12 480 12 480 7 702 7 702 62% 4 778Social Sector EPWP Incentive 29 072 - 29 072 29 072 29 072 29 072 100% -

Page 17: Gauteng Provincial Preliminary Expenditure for 2013 and Gauteng Treasury Spending

2012/13 Preliminary Conditional Grant expenditure

Conditional GrantAnnual Grant

Allocation

Adjustments

Increase/ (Decrease)

Adjusted Annual Budget

Transfers from

National

Amount transferred to Dept.

Total Actual Exp.

Actual YTD Exp.

Outcome (Over) / Under

R’000’ R’000 R’000 R’000’ R’000 R’000’ % R’000’

Local Govt. and Housing

Human Settlements 4003 776 - 4003 776 4003 776 4003 776 4001 568 100% -

Infrastructure Development

Devolution of Property Rates 281 469 28 083 309 552 281 469 309 552 309 502 100% -

Sport, Arts, Culture and Recr.

Mass Sport & Recreation Participation

73 930 682 74 612 73 930 75 522 75 522 102% -1 592

Community Library Services 56 452 1 010 57 462 56 452 55 877 55 877 99% 575

Transport

Provincial Roads Maintenance

579 081 424 038 1003 119 579 081 639 448 995 835 99% 13 284

Public Transport Operations 1625 746 - 1625 746 1625 746 1625 746 1587 923 98% 37 823

TOTAL 15622 619 561 05414525

56613710

79913310 124 13579 458 93% 956 002

Page 18: Gauteng Provincial Preliminary Expenditure for 2013 and Gauteng Treasury Spending

Preliminary Conditional grants Expenditure

• Overall provincial grant funding was increased by R596mil from R15.6bn to R16.2bn.

• A total amount of R15.2bn (or 93%) was spent at the end of the year.

• The major under-spending was recorded in the department of Education, Health and Transport.

• Treasury will conduct a deeper analysis on the performance of grants to also assist in finding ways to improve grant performance during the course of 2013/14.

Page 19: Gauteng Provincial Preliminary Expenditure for 2013 and Gauteng Treasury Spending

Conclusions

• The overall Q4 financial performance shows a general improvements in the management of finances in the province.

• This level of performance shows the benefits from the cost-containment measures implemented.

• The management of cash has significantly improved

• Provincial Own revenue should furthermore be given priority in order to fund provincial imperatives

Page 20: Gauteng Provincial Preliminary Expenditure for 2013 and Gauteng Treasury Spending

Gauteng Treasury Spending

Page 21: Gauteng Provincial Preliminary Expenditure for 2013 and Gauteng Treasury Spending

GPT Preliminary Expenditure 2013

 PROGRAMMESFINAL APPROPRIATION

R’000

ACTUAL EXPENDITURE

R ’000

VARIANCE

R ’000 (%)

Administration 63 019 59 768 3 251 (5%)

Sustainable Resource Management 95 284 85 341 9 943 (10%)

 Financial Governance 36 482 35 994 488 (1%)

Provincial Accounting Services 43 825 43 824 (0%)

TOTAL 238 610 224 927 13 683 (6%)

Page 22: Gauteng Provincial Preliminary Expenditure for 2013 and Gauteng Treasury Spending

GPT Expenditure Estimates over the MTEF

 ECONOMIC CLASSIFICATIONFINAL APPROPRIATION

R ’000

ACTUAL EXPENDITURE

R ’000

VARIANCE

R ’000

Compensation of Employees 141 127 141 098 29

 Goods & Services 44 027 32 139 11 888

 Transfers & Subsidies 50 110 50 108 2

Capital 3 346 1 573 1 773

TOTAL 238 610 238 61013 683

(6%)

Page 23: Gauteng Provincial Preliminary Expenditure for 2013 and Gauteng Treasury Spending

GPT Non Financial Performance

Actual

Achievement 2011/12

Planned Target 2012/13

Actual Achievement 2012/13Deviation from planned

target to actual achievement for 2012/13

Comments on deviations

New indicator Develop, approve and

implement security

vetting strategy by 31

March 2013

100% of new employees were

security vetted according to SSA

guidelines before appointment for

criminal record, citizenship, credit

record and employment history.

The department was required

to Implement the DPSA

instruction to vet 100% of all

new employees and Not

develop a separate security

vetting strategy as per the

Target in the APP

N/a 

Provincial Adjustment budget tabled in November 2011.

Table 1 provincial

Adjustment budget in

November

2 Provincial Adjustment budgets

tabled at legislature in November

2012 and March 2013.

The tabling of March

adjustment budget was to

allocate funds that became

available after the November

2012 adjustment.

N/A

New Indicator Prepare and submit 4 IGR forum reports on Indaba, CFO’s, Debt, Grant and Internal Audit

3 IGR’s forum reports on Indaba, CFO’s, Debt, Grant and Internal Audit prepared and submitted.

Chief Financial Officers Forum and Municipal Finance Indaba for quarter 3 cancelled due to non-availability of key stakeholders.

N/A

Page 24: Gauteng Provincial Preliminary Expenditure for 2013 and Gauteng Treasury Spending

THANK YOU