NCOP PRESENTATION ON CONDITIONAL GRANTS AND CAPITAL EXPENDITURE – NORTH WEST.

FOURTH QUARTER ENDING 31 MARCH 2006

2006-05-03

PURPOSE To provide information to the NCOP

on data on trends in allocations, transfers and actual expenditure of all conditional grants and capital expenditure managed by the Department.

A brief assessment of the monitoring capacity for 2005/06.

Over / under spending and the capacity constraints.

2006/07 Service Level Agreements and business plans progress.

OVERVIEW 8 CONDITIONAL GRANTS MANAGED BY DOH NW. CONSTITUTES 14% OF TOTAL BUDGET. THERE HAS BEEN A MARKED INCREASE IN THE

ALLOCATIONS FOR THE PROVINCE WITH A VIEW OF CLOSING THE EQUITY GAP WITH OTHER PROVINCES.

SIGNIFICANT IMPROVEMENT IN SPENDING HAS BEEN REALISED FOR THE YEAR UNDER REVIEW (2005/06)

STRENGTHENING OF PROJECT MANAGEMENT IN RELATION TO CONDITIONAL GRANTS HAS IMPROVED THE MONITORING CAPACITY.

% OF OVERALL UNDER EXPENDITURE REDUCED TO 9%.

TRENDS IN EXP. & ALLOCATIONS

YEAR 01/02 02/03 03/04 04/05 05/06 06/07 07/08

NTSG 38,520

32,891

35,000 38,606 71,889

69,380 70,509

HPT&D 24,377

52,824

37,112 44,903 64,012

62,564 65,692

HOSP.REVT.

44,707

6,513

37,981 81,930 70,142

125,493

106,495

HIV/AIDS

2,253

21,303

31,260 64,619 100,921

142,316

149,432

HM&QI 0 14,193

12,196 9,407 17,849

13,400 14,070

INP 28,314

36,446

63,699 9,336 10,890

0 0

INFRSTRC.FORENSIC SERV.

Malaria

8,587 43,971

26,419 22,722 ,734 2,432

42,174 2,230

,968

58,00029,000

70,90029,000

TRENDS IN EXP, TRANSFERS. & ALLOCATIONS TRANFERS FROM NATIONAL HEALTH

HAS BEEN RECEIVED IN ALL FINANCIAL YEARS AND GRANTS WITH THE EXCEPTION OF THE FOLLOWING:

AN AMOUNT OF R5.915m WAS WITH HELD FOR HIV&AIDS – 2004/05.

AN AMOUNT OF R40m WAS WHITHHELD FOR REVITILIZATION – 2005/06 AS PER AGREEMENT.

GRANT BUDGET ROLL-OVER

TOTAL AVAILABLE

AMT RECEIVED

AMT. SPENT

%SPENT

COMPREHENSIVE HIV & AIDS

100,921

- 100,921

100,921

100,921 100

INTEGRATED NUTRITION PROGRAME

10,981 - 10,981 10,981 10,891 99.18

HOSPITAL REVITALISATION

58,056 44,343 102,399

57,201 77,049 75.24

HOSPITAL MANAGEMENT & QUALITY IMPROVEMENT

12,642 5,661 18,303 12,642 17,856 97.56

HEALTH PROFESSION TRAINING & DEVELOPMENT

62,564 1,448 64,012 62,564 64,012 100

NATIONAL TERTIARY SERVICES GRANT

67,888 3,394 71,282 67,888 71,283 100

FORENSIC PATHOLOGY SERVICES

11,116 - 11,116 11,116 2,230 20.06

INFRASTRUCTURE GRANT

43,723 - 43,723 43,490 42,174 96.46

TOTAL 356,910

54,846 422,738

366,803

386,416 91.41

EXPENDITURE FOR 2005/06 FOURTH QUARTER

GRANT ADJ.ALLOC

EXPENDT.

VARIANCE

HIV/AIDS

100,921 100,921 0

NTSG 71,283 71,283 0

HPT&D 64,012 64,012 0

HM&QI 18,303 17,849 454

EXPENDITURE FOR 2005/06 FOURTH QUARTER

GRANT. ADJ.ALLOC

EXPENDT. VARIANCE

INP 10,981 10,891 ,090

INFRSTRUCTURE

43,723 42,174 1,549

HOSP.REVT.

102,399 77, 049 25,350

FORENSIC SERVICES.

11,116 2,230 8,886

OVER/UNDER EXPENDITURE Total allocation for the year

under review was : R422,738m Total amount unspent : R36,322

which is 8.59% of the overall

allocation. The 05/06 conditional grants

expenditure performance is the best in years.

HOSPITAL REVITALIZATION GRANT. To provide funding to enable

provinces to plan, manage, modernise, rationalise and transform the infrastructure, health technology, organizational management & development and monitoring and evaluation of hospitals in line with national policy objectives.

HOSPITAL REVITALIZATION

Sub-Programmes

Budget  R’000

EXPENDITURE BALANCE

New Facilities (H3E)

3 869 3 489 380

Upgrading (H3F) 67 300 43 184 24 116

Other Facilities (H3G)

29 199 29 072 127

Rehabilitation (AA1)

2 031 1 303 728

TOTAL 102 399 77 049 25 350

HOSPITAL REVITALIZATION (cont)

The balance of the allocation against expenditure amounts to 25%.

An amount of R25m has been processed for payment to the implementing agent already.

The expenditure will be incurred as soon as transfers from NDoH is received.

The full amount of R25,350m has been requested for a roll over from the provincial Treasury.

HOSPITAL REVITALIZATION (cont)

Capacity challenges : Human Resource capacity both

within and with implementing agents.

Incapacity of some consultants and small emerging contractors to handle projects with the required competencies.

Medico Legal Mortuaries Progress: The Programme has the costed

operational plan for the year and the necessary staff structure has been finalised.

All facilities have been audited and are in the process of being upgraded.

Medico Legal Mortuaries Challenges: The funds from the conditional

grant of the Programme were only received in December 2005.

Achievements: Commitments for equipment. Posts advertised already. Approved business plan.

SERVICE LEVEL AGREEMENTS/ BUSINESS PLANS.

A Service Level Agreement is in place between the Departments of Health and Public Works.

Business plans have been forwarded to NDoH for all the conditional grants and awaiting approval.

Transfers from NDoH have been received of all Conditional Grants during the month of April 2006.

EQUIPMENT BUDGET V/S EXPENDITURE FOR FIN. YEAR 05/06CODE ADJ.ALLOC EXPENDT. VARIANCE

MOTOR TRANSPORT(AMBULANCE)

14,297 9,809 4,487

OFFICE FURNITURE 1,018 1,018 0

MEDICAL EQUIPMENT 39,000 49,919 -10,919

FORENSIC PATHOLOGY SERVICES

7,200 189 7,010

OTHER EQUIPMENT (Computers, printers etc.)

28,048 11,979 8,069

HEALTH FACILITIES AND MAINTENANCE

8,500 5,661 2,838

TOTAL FOR EQUIPMENT

98,063 78,575 19,487

VARIENCE REPORT The ratio 70/30 was used to purchase

ambulances and patient transport. The variance of R4,487 was

earmarked for mobile clinics which could not be delivered before the end of the financial year.

The procurement will therefore have to be made in the new financial year.

VARIENCE REPORT cont…

The R9.8 million was used to purchase the 18 ambulances and 14 planned patient transport.

The budget for Office furniture was transferred to Public Works however, Public Works could not supply the Department due to insufficient allocation.

Medical equipment were purchased for programs 2 – District Health Services and Program 4 – Provincial Hospital Services.

VARIENCE REPORT cont…

The variance of R7 million will be rolled over into the current financial year to enable the Forensic Pathology Services to purchase mortuary vehicles.

Also the variance of R2.8 million for conditional grants under program 8 - equipment for clinics would be rolled over into the current budget.

The variance on other equipment is due to committed orders which had to be cancelled due to delivery after March 31st.

CONCLUSION The Department is confident

that systems are now in place to monitor the performance of conditional grants in line with DORA hence the improved outcome for the 2005/06 financial year.

CONCLUSION CONT!! We will work closely with the

CIDB (Construction Industry Development Board) to use their classification of contractor competence, in appointment of contractors.

CLOSURE

Thank you for listening