APPROPRIATIONS COMMITTEE PRESENTATION URBAN DEVELOPMENT AND INFRASTRUCTURE Presenter: Marissa Moore Act Chief Director, National Treasury 30 June 2011
VOTE 3: COOPERATIVE GOVERNANCE AND TRADITIONAL AFFAIRS Preliminary expenditure - The department spent R44 billion which is 99.74 per cent of the total available budget R44 billion. Programme 1: Administration: The expenditure amounted to R169 million which is 92.48 per cent of the available budget. The 7.52 per cent under spending is due to the provincialisation process which took longer than expected, delaying the appointment of employees and affecting compensation of employees budget. Programme 2: Policy, Research and Knowledge management: The total expenditure amounted to R35 million which is 81.15 per cent of the available budget. The reasons for the under spending in this programme is due to delays in acquiring IT software. A new unit Knowledge management, whose employees were appointed late in the financial delaying some, projects thereafter affecting goods and services budget Programme 3: Governance and Intergovernmental Relations: The total expenditure amounted to R43 billion which is 99.83 per cent of the available budget. The under spending in capital assets is due to delays in purchasing the unit s equipment. Grants such as Equitable Share and Municipal Infrastructure make up 93 per cent of the department s adjusted appropriated allocation. A total of R35,6 million unspent funds were earmarked for transfer from the CWP transfers and subsidies to build factories to support the implementation of the ward-based cooperatives. Programme 4: National Disaster Management Centre: The total expenditure amounted to R289 million which is 97.83 per cent of the available. The lower than expected spending is due to low spending in the consultants budget as well as the unfilled vacancies. Programme 5: Traditional affairs : The total expenditure amounted to R61 million which is 83.45 per cent of the available budget. The reasons for the under spending is delays in setting-up of the Department of Traditional Affairs, which affected the budget for compensation of employees and goods and services. The process will only start in 2011/12 financial year 2
VOTE 26: COMMUNICATIONS As at the end of 31 March 2011, the department expenditure performance was at R1.427 billion which is equivalent to 66.8 per cent of the total adjusted budget of R2.138 billion. A lower spending in 2010/11 financial year is accounted for within the following economic classifications: Current Payments: lower spending is mainly attributed to vacant positions, outstanding payments to service provider for the review of financial controls and implementation of supply chain systems, automation of business process and for the implementation of service deployment of the e-cadre programme. R109.742 million for 112 Emergency call centre was not spent due to the programme being suspended. Transfer Payments: -Transfer and subsidies to public entities amounts to R1.631 billion or 76.3 per cent of the total adjusted budget of the department: lower spending is attributed to savings of R150 million for Telkom 2010 FIFA World Cup access network and R119.900 million for Sentech DTT infrastructure rollout and dual illumination and R180 million for Set-Top-Boxes subsidy which was not spent due to the review of Digital Terrestrial Transmission standards. Payments for Capital Assets: lower spending is attributed to the delay in the implementation of the Open Source and Disaster Recovery Site projects.
VOTE 28: ENERGY 1. Preliminary expenditure at year end The department spent R5.5 billion which translates to 97.2% of the total available budget or 2.8%. Expenditure for 2010/2011 has increased by 0.3 percentage points when compared to 2009/2010 financial year. 2. Notable higher or lower than expected programme spending Programme 1-4.5% under spending relating to the procurement of goods & services. Programme 3-4.3% under spending as a result of outstanding transfer payments, vacancies within the branch and outstanding order payments Programme 4-3.4% under spending, 76.3%of the total under spending in the department is accounted for within this program with INEP taking responsibility for 95.9%. 3. Spending in terms of economic classification of the programmes Current Payments- 6.5% under spending, with goods & services responsible for 68.6% and Compensation responsible for the remaining 31.4% of total savings. Savings under goods & services due to pending expenditure because of delays in the delivery of goods and services, late receipt of invoices and delays in the processing of payments. Savings under compensation realized due to vacancies within the branch. Transfers & Subsidies- 2.6% under spending, with transfers to public corporations and private entities responsible for 95.2% of total savings. Delays in transfers due to delays in service agreements, late funding requests by municipalities and time frames attached to the bank verification process. 4
VOTE 30: HUMAN SETTLEMENTS Preliminary expenditure is R16.1 billion or 98.7 per cent of the total adjusted allocation of R16.3 billion, compared to 98.3 per cent in the previous financial year The Human Settlements Development Grant makes up 93 per cent of the department s adjusted appropriated allocation. Provincial spending equates to 97 per cent, with largest under-spending by North West province, who spent 87 per cent of their HSDG allocation. Programme 1: Administration: Total expenditure amounted to R188.6 million (85%) of the adjusted appropriation of R221.4 million. Under spending is as a result of funds provided for legal advisory services not utilised and the non-filling of vacant posts. The vacancy rate in this programme is at 10.8% of available posts. Programme 2: Housing Policy, Research and Monitoring: Total expenditure amounted to R32.6 million (74%) of R43.9 million. Under spending is due to delay in the roll out of a new research framework and agency support services and unfilled vacant posts. Programme 3: Housing Planning and Delivery Support: Total expenditure amounted to R156.8 million (76%) of adjusted appropriation of R207.2 million. Under spending in the Programme is as a result of delays in the implementation of ACIP and the non-filling of vacancies. The vacancy rate in this programme is at 27.6% of available posts. Programme 4: Housing Development Finance: Total expenditure amounted to R15.6 billion (99%) of the adjusted appropriation of R15.7 billion. Under spending can be attributed to delays in the implementation of projects on the Rural Household Infrastructure Grant. Programme 5: Strategic Relations and Governance: Total expenditure amounted to R87.5 million (60.4%) of the adjusted appropriation of R144.9 million. Under spending can mainly be attributed to unfilled vacant posts and delays in appointing service providers to maintain and render the necessary support to provinces on the Housing Subsidy System. The vacancy rate in this programme is at 23.5% of available posts. 2
VOTE 36: TRANSPORT Preliminary expenditure: as at 31 March, the end of the 4 th quarter and the 2010/11 financial year, the department had spent R25.140 billion or 99.4 per cent of the total available budget of R25.289 billion adjusted appropriation for the 2010/11 financial year Programme 1: Administration: over spending of its budget by 4 per cent of the total adjusted appropriation of R233 million and this is largely due to higher than anticipated traveling cost, legal cost incurred by the Department, media campaigns and IT infrastructure including Enterprise Content Management. Programme 2:Transport Policy and Economic Regulation spent 84.7 per cent of its budget of R45 million for the 2010/11 financial year and the 15.4 per cent under-expenditure was due to late appointments of services providers by the Department Programme 3: Transport Regulation and Accidents and Incidents investigation spent 101.4 per cent of its budget of R391 million and the over expenditure was due to the payment made to Tasima, the supplier that maintains enatis. Programme 4: Integrated Planning and Inter-Sphere Co-ordination spent 99.68 per cent of the total adjusted appropriation of R6.9 89 billion. Programme 5: Transport Logistics and Corridor Development spent 74.6 per cent of its budget of R28 million adjusted appropriation for the 2010/11 financial year and this 25.4 per cent under expenditure by the Department was mainly due the delays in the implementation of the freight master plan, boarder optimization strategy, Air freight strategy, Heri Smith freight and the Cato ridge. The department has indicated that roll overs will be requested to fund the already made commitments. Programme 6: Public Transport spent 99.3 per cent of its budget of R17.4 billion for the 2010/11 financial year and the under expenditure was due the less than anticipated taxi scraps for that financial year. Programme 7: Public Entity Oversight and Boarder Operations and Control spent 97.3 per cent of its budget of R149 million appropriated for the 2010/11 financial year and this was due to the less than anticipated expenditure in goods and services which was mainly related to the delays in the implementations of the Electronic Performance Management system. 1
VOTE 37: WATER AFFAIRS Preliminary expenditure - The Department s expenditure outcome amounted to R7.94 billion or 96.8 percent out of available budget. Current payments: There is a lower than expected spending of R3.17 billion or 85.1 per cent of the available budget of R 3.72 billion Compensation of employees: A lower than expected expenditure of R975 million or 86.02% of the available budget of R1.13 billion was experienced due to unfilled vacancies in programmes 1, 4 and 5. Goods and Services: A lower than expected expenditure of R2.59 billion was experienced, when compared to the available budget.spending in capital assets is due to delays in purchasing the CWP programme management s unit equipment. This is due to: Programme 1: The audit services assessing the water allocation reform issues were finalised in the second half of the 2009/10 financial year and it was determined that further allocations for reform activities were required. This further lengthened the licensing process and as such, the allocated amount could not be spent. Programme 2: An amount of R 7.5 million had not been spent on the construction and expansion of the gauging weir network due to delays experienced which affected the commencement of at Klipplaatsdrift and Sendelingsdrift. Programme 4: Regional Management: The delay in approvals of projects underpinning the Masibambane programme led to the department not spending an amount of R74 million. Transfers and Subsidies: A lower than expected expenditure of R3.2 billion was experienced, when compared to the available budget. This is due to: programme 2: The payments for motor vehicle licences to municipalities were not finalised by the end of the financial year. Furthermore, the leave gratuity payments to households were delayed leading to the lower than expected expenditure. 2