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13 September 2006 1
SELECT COMMITTEE ON FINANCE:Public Hearings on Conditional Grants and Capital Expenditure
First Quarter results
Presentation by:Rannoi Sedumo – CFO (Acting HOD)
Gilberto Martins – DDG PW
13 September 2006 2
CONTENTS• Strategic Context• Budget trends• Roads infrastructure
– Provincial Infrastructure Grant– Departmental Infrastructure budget– Gautrain
• Public Works infrastructure– Departmental Infrastructure budget– Client Department budgets
13 September 2006 3
VISION AND MISSIONVision
• Socio-economic growth, development, and an enhanced quality of life for all people in Gauteng
Mission• To develop an integrated, sustainable infrastructure,
which promotes a people-centered, innovative, developmental public works and an accessible, safe and affordable movement of people, goods and services
13 September 2006 4
SIX (6) STRATEGIC OBJECTIVES• Provision of accessible, affordable, reliable, safe, integrated
and environmentally sustainable public transport system• Effective management and transformation of transport and
socio-economic infrastructure related institutions, systems and processes
• Support economic growth and investments through the provision of appropriate transport systems and socio-economic infrastructure
• Integrate transport systems and socio-economic infrastructure systems in the Gauteng Growth and Development Strategy and development plans of other spheres of government
• Implement the Expanded Public Works Programmes in a manner that optimizes employment and addresses economic and social needs of the poor
• Efficient and effective management of the Department
13 September 2006 5
1st Quarter Expenditure Review
Financial year 2006/07Period : April to June 2006
13 September 2006 6
Budget Spending trendsSUMMARY OF RECEIPTS
Audited Audited AuditedAdjusted budget Appropriated MTEF MTEF
R'000 R'000 R'000 R'000 R'000 R'000 R'0002002/03 2003/04 2004/05 2005/06 2006/07 2007/08 2008/09
Exp. trends MTEF allocations A+B 1,398,198 1,568,337 1,751,532 1,488,007 6,225,193 5,380,786 5,223,218
CAPEX related alloactions - Capital 426,749 317,775 380,854 407,179 297,397 411,834 547,131 - Maintenance 311,412 311,105 266,337 322,424 287,332 232,070 246,816 Provincial Infrastructure Grant 64,020 94,321 132,916 147,911 163,098 162,451 172,964 - GPG Precinct 36,413 54,508 270,000 - Gautrain Rapid Rail Link 4,641,000 3,651,000 3,236,000 Total A 838,594 777,709 1,050,107 877,514 5,388,827 4,457,355 4,202,911 As % of total budget 60.0% 49.6% 60.0% 59.0% 86.6% 82.8% 80.5%
Other B 559,604 790,628 701,425 610,493 836,366 923,431 1,020,307 As % of total budget 40.0% 50.4% 40.0% 41.0% 13.4% 17.2% 19.5%
Outcome
13 September 2006 7
SUMMARY OF RECEIPTS
Appropriated MTEF MTEFR'000 R'000 R'000
2006/07 2007/08 2008/09MTEF allocations A+B 6,225,193 5,380,786 5,223,218
CAPEX related alloactions - Capital 297,397 411,834 547,131 - Maintenance 287,332 232,070 246,816 Provincial Infrastructure Grant 163,098 162,451 172,964 - GPG Precinct - Gautrain Rapid Rail Link 4,641,000 3,651,000 3,236,000 Total A 5,388,827 4,457,355 4,202,911 As % of total budget 86.6% 82.8% 80.5%
Other B 836,366 923,431 1,020,307 As % of total budget 13.4% 17.2% 19.5%
Equitable share allocated to capital 584,729 643,904 793,947 As % of total budget 9.4% 12.0% 15.2%
13 September 2006 8
SUMMARY OF RECEIPTS EXCLUDING GAUTRAIN
Appropriated MTEF MTEFR'000 R'000 R'000
2006/07 2007/08 2008/09MTEF allocations A+B 1,584,193 1,729,786 1,987,218
CAPEX related alloactions - Capital 297,397 411,834 547,131 - Maintenance 287,332 232,070 246,816 Provincial Infrastructure Grant 163,098 162,451 172,964 - GPG Precinct - - - - Gautrain Rapid Rail Link - - - Total A 747,827 806,355 966,911 As % of total budget 47.2% 46.6% 48.7%
Other B 836,366 923,431 1,020,307 As % of total budget 52.8% 53.4% 51.3%
Equitable share allocated to capital 584,729 643,904 793,947 As % of total budget 36.9% 37.2% 40.0%
13 September 2006 9
SUMMARY OF RECEIPTS
ROADS PUBLIC WORKS TOTALR'000 R'000 R'000
2006/07 2006/07 2006/07CAPEX related allocations - Capital 231,557 65,840 297,397 - Maintenance 202,857 84,475 287,332 Provincial Infrastructure Grant 163,098 163,098 Total 597,512 150,315 747,827 As % of total budget 79.9% 20.1% 100.0%
13 September 2006 10
Conditional Grant• The department is a recipient of the
Provincial Infrastructure Grant from National Treasury
• The grant is used for maintenance and rehabilitation of roads
• A business plan was submitted as required by Division of Revenue Act
13 September 2006 11
Provincial Infrastructure Grant
ActualYear Quarter 1 Quarter 2 Quarter 3 Quarter 4 TOTAL BUDGET
R'000 R'000 R'000 R'0002006/07 34,834 46,749 51,487 31,259 164,329 163,098 % of Total 21% 28% 31% 19% 100%
Estimate
Provincial Infrastructure Grant
34,83446,74951,487
31,259164,329163,098
Quarter 1Quarter 2Quarter 3Quarter 4
TOTALBUDGET
Qua
rter
Expenditure
2006/07
13 September 2006 12
Provincial Infrastructure Grant
Years Quarter 1 Quarter 2 Quarter 3 Quarter 4 TOTALR'000 R'000 R'000 R'000
2005/06 19,227 30,963 43,569 52,734 146,493 2006/07 34,834 46,749 51,487 31,259 164,329
-
20,000
40,000
60,000
80,000
100,000
120,000
140,000
160,000
180,000
Quarter1
Quarter2
Quarter3
Quarter4
TOTAL
2005/062006/07
13 September 2006 13
Budget Actual Budget Actual Budget EstimatedP139-1 Rehab 17,361 10,413 968 RetentionK69 – Rehab 13,196 1,127 0 FinishedP119-1 – Reseal 598 0 39,843 ConstructionP91-1 - Reseal Phase 1 2,229 3,816 27,291 ConstructionP156-2/P202-1 – Reseal 33,798 12,454 826 Retention83, 1321 – Reseal 26,800 436 228 Finished795 – Rehab 1,232 0 0 FinishedP66-1 Phase 2 – Reseal 27,460 28,032 1,206 RetentionP66-1 Phase 3 – Rehab 1,572 0 1,188 PlanningP167-1 – Reseal 844 15,286 23,845 ConstructionP175-1, 1113 – Reseal 2,026 0 0 Planning1132 – Reseal 7,735 916 0 FinishedP174-1 – Reseal 12,633 0 623 RetentionP58-1 – Reseal 663 19,997 19,288 ConstructionD51 Phase 1 – Reseal 2,257 16,703 9,653 ConstructionP159-1, 2516 – Reseal 453 104 0 Planning434, 1931 & 1932 67 12,042 1,568 Retention1520, 405 – Reseal 0 19,658 1,426 RetentionK103 – Reseal 0 4,628 631 RetentionP71-1 Phase 2 – Rehab 0 164 119 PlanningP123-1 – Rehab 0 283 0 PlanningP158-1 – Reseal 0 434 0 PlanningDiluted Emulsion 06/07 0 0 7,000 ConstructionP38-1 - Reseal 0 0 10,000 ConstructionP95-2 – Rehab 0 0 20,585 ConstructionTotal 132,918 150,925 147,911 146,493 163.098 166,288
132,
918
147,
911
163,
098
Expenditure per project on the Conditional Grants for 2004/05 to 2006/07
Project Expenditure Status2004/05 2005/06 2006/07
13 September 2006 14
Capital Expenditure
ActualYear Quarter 1 Quarter 2 Quarter 3 Quarter 4 TOTAL BUDGET
R'000 R'000 R'000 R'0002006/07 69,658 80,692 139,090 143,238 432,678 432,554 % of Total 16% 19% 32% 33% 100%
Estimate
Capital Expenditure
0 100000 200000 300000 400000 500000
Quarter 1Quarter 2Quarter 3Quarter 4
TOTALBUDGET
Qua
rter
Amount
2006/07
13 September 2006 15
Capital Expenditure
Years Quarter 1 Quarter 2 Quarter 3 Quarter 4 TOTAL BUDGETR'000 R'000 R'000 R'000
2005/06 61,010 101,699 56,384 69,137 288,230 339,516 2006/07 69,658 80,692 139,090 143,238 432,678 432,554
-100,000200,000300,000400,000500,000
Amount
Quarter
Capital Expenditure
2005/062006/07
13 September 2006 16
Key projects in Roads Infrastructure
• Construction of the dual carriageway and two intersections for Cosmo City
• Construction of K60 in Sunninghill• Construction of a dual carriageway from Dalpark
to Heidelberg - K109 Old Heidelberg road• Rehabilitation of the Cullinan road in the
Dinokeng area
13 September 2006 17
GAUTRAIN
– Delay in the sign off of the financial implications of the project might lead to under expenditure.
– Indications are that the financial closure will be reached towards the end of September 2006.
– This milestone will accelerate expenditure.
13 September 2006 18
GAUTRAIN EXPENDITURE
BUDGETR’000
ACTUALR’000
VARIANCER’000
% SPENT
4 641 000 254 405 4 386 595 5,5
13 September 2006 19
Gauteng Department of Public Transport, Roads, and Works-
“The Preferred Service Provider”
13 September 2006 20
DPTRW – Vote 9 : Program 2 – Capital Works• To construct new facilities• Upgrade , rehabilitation, maintain existing
facilities• Implement client departments needs• Render professional and technical service• Ensure optimum usage and benefits of
provincial property portfolio
13 September 2006 21
Expenditure Report – Prg 2 :Public WorksCapital Works
ProgrammeNumber
Budget April 2006Exp
May 2006Exp
June 2006Exp
Total 1st Quarter 2006
Exp
% 1st Quarter
Exp
Program 2 R 150 315 000 R 1 680 465 R 8 860 049 R 14 620 567 R 24 981 080 16%
Notes:
Expenditure in the April is low due to commencing of work on site. New project started in this financial year have a low capital expenditure in month 1.
To ensure that expenditure is maintained at minimum average of app R12 mil per month in accordance with budget allocation, April month under spending is being factored in to proceeding months.
Monthly project review meeting being held to monitor expenditure.
13 September 2006 22
Ist Quater Expenditure 06/07 PW Capital Works
150
1.6 8.614.8 25 (16%)
0
50
100
150
1st Qtr
Budg
et R
000
000
Budget Exp April Exp May Exp June Total 1st Qrt
13 September 2006 23
DPTRW – Vote 9 : Program 2 – Maintenance
• Upgrade , rehabilitation, maintain existing facilities
• Implement client departments needs• Render professional and technical service• Ensure optimum usage and benefits of
provincial property portfolio
13 September 2006 24
Expenditure Report – Prg 2 :Public Works Maintenance
ProgrammeNumber
Budget April 2006Exp
May 2006Exp
June 2006Exp
Total 1st Quarter 2006
Exp
% 1st Quar Exp
Program 2 R 20 000 000 R 2 205 581 R 2 528 629 R 1 700 582 R 6 434 792 32%
Note:
The Pretoria region has the largest number of Public Works facilities that it is required to maintain, hence the budget allocation is large in comparison to the other regions ie Pretoria Region = R 10 mil : Springs Region R 1.0 mil.
Expenditure is in line with the projection at present.
Monthly project review meeting are held to review progress and outputs.
13 September 2006 25
Public Works - Maintenance Per Region
0
500000
1000000
1500000
2000000
2500000
3000000
Westhoven Pretoria Soweto Tulisa Park Springs
Expe
nditu
re
April May June TOTAL
13 September 2006 26
Expenditure Report – Social DevelopmentProgrammeNumber
Budget April 2006Exp
May 2006Exp
June 2006Exp
Total 1st Quarter 2006 Exp
% 1st Quarter Exp
Capital: R 12 542 167 R 3 011 879 R 2 070 841 R 331 931 R 5 414 651 43 %
Maintenance : R 14 700 000 R 857 507 R 1 343 551 R 783 479 R 2 984 537 21%
0
2000000
4000000
6000000
8000000
10000000
12000000
14000000
Budget April May June Total 1st Qrt
Social Development - Capital
13 September 2006 27
Social Development - Maintenance 1st Quarter
0100000200000300000400000500000600000700000800000900000
1000000
Westhoven Pretoria Soweto Tulisa Park Springs
Expe
nditu
re
April May June TOTAL
13 September 2006 28
Expenditure Report – DACEProgrammeNumber
Budget April 2006Exp
May 2006Exp
June 2006Exp
Total 1st Quarter 2006 Exp
% 1st Quarter Exp
Capital: R 6 749 000 R 1 741 091 R 1 121 242 R 1 137 361 R 3 999 694 60%
Maintenance : R 7 951 000 R 81 319 R 940 R 22 616 R 104 875 1%
0
1000000
2000000
3000000
4000000
5000000
6000000
7000000
Budget April May June Total 1st Qrt
DACE - Capital
13 September 2006 29
DACE Maintenance
0100002000030000400005000060000700008000090000
100000
Westhoven Pretoria Soweto Tulisa Park Springs
Expe
nditu
re
April May June TOTAL
No allocation
13 September 2006 30
Expenditure Report – HealthProgrammeNumber
Budget April 2006Exp
May 2006Exp
June 2006Exp
Total 1st Quarter 2006 Exp
% 1st Quarter Exp
Capital: R 556 161 792 R 97 721 612 R 71 328 956 R 57 100 890 R 226 161 458 41%
Maintenance : R 288 878 000 R 20 465 332 R 28 978 934 R 24 257 255 R 73 701 521 26%
0
100000000
200000000
300000000
400000000
500000000
600000000
Budget April May June Total 1st Qrt
Health- Capital
13 September 2006 31
Health Department - Maintenance
0
5000000
10000000
15000000
20000000
25000000
30000000
35000000
Westhoven Pretoria Soweto Tulisa Park Springs
Expe
nditu
re
April May June TOTAL
13 September 2006 32
Expenditure Report – SRACProgrammeNumber
Budget April 2006Exp
May 2006Exp
June 2006Exp
Total 1st Quarter 2006 Exp
% 1st Quarter Exp
Capital: R 46 000 000 R 4 895 012 R 2 568 765 R 4 657 564 R 12 121 340 27%
0
5000000
10000000
15000000
20000000
25000000
30000000
35000000
40000000
45000000
50000000
Budget April May June Total 1st Qrt
SRAC - Capital
13 September 2006 33
DPTRW – Vote 9 : Program 5 – EPWP• Enable economic upliftment and
empowerment• Reduce infrastructure backlogs• Alleviate unemployment by creating jobs• Facilitate skills development through
training• Target woman, youth, disabilities job
creation
13 September 2006 34
Expenditure Report – Prg 5 - EPWP
ProgrammeNumber
BudgetR 000
April 2006Exp
May 2006Exp
June 2006Exp
Total 1st Quarter 2006 Exp
Availablebudget
% 1st Quarter Exp
Program 5 R 224 428 16 390 654 38 252 956 46 577 148 101 220 758 123 207 242 45%
13 September 2006 35
Ist Quater Expenditure 06/07 EPWP
224
1638 46
101 ( 45 %)
0
50
100
150
200
250
1st Qtr
Budg
et R
000
000
Budget Exp April Exp May Exp June Total 1st Qrt
13 September 2006 36
Wayforward• Introduction of multi year financial budgeting and
implementation for projects.• Life cycle budgeting to be developed at project
identification phase.• Contractual implementation in line with CIDB
requirements.• Construction Contact Centres established to
assist with contractor development and project assistance.
13 September 2006 37
Monitoring capacity and planning
• Monthly Expenditure Report meetings are held between programme managers and the Finance branch.
• Senior quarterly management meetings are used to discuss performance of the various programmes.
• The Executive Management committee also receives monthly expenditure report from the CFO.
• The HOD and DDG PW holds one-on-one meetings with individual managers from time to time to ensure accountability for service delivery.
13 September 2006 38
Monitoring capacity and planning• At unit level performance is monitored against
operational plans.• Monthly and quarterly infrastructure reports are
send to Treasury.• Project Management Resource Groups assist in
ensuring performance happens at site level.• Client departments needs/plans developed and
implemented.
13 September 2006 39
Service Level Agreements• SRAC has been signed in August 06• Social Development , final draft with client
for legal review and comments, will be signed 2 weeks post comments received by Public Works.
13 September 2006 40
Service Level Agreements• Health Department was signed July 06.• DACE Final draft to DACE , if approved to
signed 19th Sept• SLA’s with Blue IQ are in place for the
Cradle of Humankind and Dinokeng projects.
13 September 2006 41
Thank You
“In order to achieve real action you must yourself be a living part of Africa and of her thought; you must be an element of that popular energy which is entirely called forth for the freeing, the progress and the happiness of Africa.”Frank Talk , Steve Biko , I write what I like