presentation to parliament conditional grants and capital expenditure 3 may 2006
DESCRIPTION
PRESENTATION TO PARLIAMENT CONDITIONAL GRANTS AND CAPITAL EXPENDITURE 3 MAY 2006. Outline. Background Allocations and transfers conditional grants Actual expenditure - conditional grants Actual expenditure – CAPEX Monitoring capacity – 2005/06 Service Level Agreements Conclusion. - PowerPoint PPT PresentationTRANSCRIPT
Outline
• Background• Allocations and transfers conditional
grants• Actual expenditure - conditional grants• Actual expenditure – CAPEX• Monitoring capacity – 2005/06• Service Level Agreements• Conclusion
Background
• Report based on preliminary 2005/06 results
• Spending on the majority of grants satisfactory
• Spending patterns reflect improved capacity and effective monitoring mechanisms
Allocations and Transfers – Conditional Grants
• Total amount of R1,434,939,000 allocated under grants from National Government
• Total amount of R1,434,939,000 received
Grant Allocated Received
R’000 R’000
Comprehensive HIV and AIDS Grant 251,468 251,468
Health Professionals Training and Development
192,373 192,373
Hospital Management and Quality Improvement 23,778 23,778
Hospital Revitalization 223,939 223,939
Integrated Nutrition Programme 26,954 26,954
National Tertiary Services 691,451 691,451
Forensic Pathology Services 24,976 24,976
Total 1,434,939 1,434,939
Actual Expenditure – Conditional Grants
• Total budget of R1,434,939,000• Total expenditure of R1,285,893,000• Variance between budget and actual
expenditure of R149,046,000
Actual Expenditure – Conditional Grants (Contd.)Grant Allocated Spent Variance Comments
R’000 R’000 R’000
Comprehensive HIV and AIDS Grant 251,468 239,550 11,918
Expenditure misallocated, to be allocated against grant
Health Professionals Training and Development Grant 192,373 180,090 12,283
Development portion not spent pending finalization of posts – rollover to be requested
Hospital Management and Quality Improvement Grant 23,778 19,514 4,264
Expenditure due to shortage of capacity at institutions, as spending on grant was decentralized
Hospital Revitalization Grant 223,939 125,710 98,229 Under spending due to delays in project implementation as a result of appeals against contract totalling R99 million – rollover to be requested
Integrated Nutrition Programme
26,954 26,954 -
National Tertiary Services Grant
691,451 691,451 -
Forensic Pathology Services Grant 24,976 2,624 22,352
Under spending due to late receipt of funding – rollover of funds to be requested
Total 1,434,939 1,285,893 149,046
Actual Expenditure – Conditional Grants (Contd.)
0
100,000
200,000
300,000
400,000
500,000
600,000
700,000
Comprehensive HIVand AIDS Grant
HealthProfessionalsTraining and
Development Grant
HospitalManagement and
QualityImprovement Grant
HospitalRevitalization Grant
Integrated NutritionProgramme
National TertiaryServices Grant
Forensic PathologyServices Grant
Allocated Spent
Actual Expenditure - CAPEX
• Total capital budget of R1,031,952,000• Actual expenditure of R943,216,000• Variance of R88,736,000• Variance mainly due to the following:
– Under spending due to delays in project implementation as a result of appeals against the contract awarded for the high rise building at King George V
– Delays in the acquisition of assets for the development of Forensic Pathology Services due to the late receipt of the grant
Monitoring Capacity – 2005/06– Improved monitoring capacity during 2005/06– Mechanisms included:
• Monthly reports by relevant managers• Monthly meetings with external service providers (e.g.
Public Works, Ithala, IDT)• Monthly project implementation reports by external
agents– Monitoring focussed on progress with implementation of
projects and the related financial implications– Project management capacity is being enhanced through
the creation and filling of the relevant posts for further enhancements to the monitoring process
CONTRACT MANAGEMENT– The Department utilizes the following agents for infrastructure delivery:
• KZN Public Works• Ithala Development Corporation• Independent Development Trust
– The relationship with the above is through signed SLAs– The details of the SLAs are as follows:
Agent SLA in place Date signed
KZN Public Works Yes 25 September 2003
Ithala Dev Corp Yes 22 March 2005
IDT Yes 16 September 2004
CHALLENGES– Delays in implementation of projects due to appeals against
tender awards– Delays in filling certain key project monitoring posts
pending finalization of restructuring process– Delays in project implementation by the Public Works
Department, resulting in continuous delays in addressing the infrastructure backlog especially in rural areas
– Impact of the multi-year nature of projects on funding requirements and planning
Fast tracking infrastructure delivery•Department currently utilizes Dept of Works to undertake all
development of physical structures in the Province
•Challenges of capacity due to countrywide skills shortage
•Impact on delivery
•Outsourcing of some of the infrastructure delivery services to alleviate
impact
•Outsourcing through sourcing of skills and expertise from the Private
sector through PPP
•Model to be introduced as a pilot with lessons learnt replicated to
reduce
infrastructure backlogs during the 2006/07 financial year
•Particular focus on construction of clinics, residential accommodation
and Revitalization projects
•SLA with clear milestones and performance plans among DOH, Works
And Outsourced Service Providers