2011/06/03

PRESENTATION TO THE STANDING COMMITTEE ON APPROPRIATIONS- UNAUDITED EXPENDITURE OUTCOME AS AT 31MARCH 2011

2011/06/03

INTRODUCTION• Year end target : 100%• Actual : 97% ( 97.5% in 2009/10).• Under expenditure has been realized

in all programmes.• Total under expenditure amounts to

R742,933m for the 2010/11 financial year, compared to R457,249m for the 2009/10 financial year.

ANALYSIS OF THE EXPENDITURE

Under expenditure is in all Economic Classifications:

• Expenditure on CoE under spending due to slow recruitment process for critical posts. Amount : R31m.


G&S and Capital expenditure under spending of R184,299m was due to commitments of R213m in the system which were note cleared by year end.

Some commitments in the system were not honoured due to banking details of suppliers not verified on Safetyweb before year-end.

An amount of R7 million for the IT Equipment was not processed as approval was only granted the 1st week of March 2011 by the Bid Adjudication Committee for the procurement of the server.

An amount of R11,6 million for procurement of equipment for the Forensic Chemistry Laboratories was not processed as SCM process were not met before financial year end.


• Transfers under spending of R509,370 million due to stopping of transfer for Hospital Revitalization Grant (R452m).

• NGO funds not transferred:• Love Iife R38m• Payment to Zivikele NGO - R600,000• Transfer to NHLS-Cancer register- R415,000

Estimated accruals for the 2010/11 financial year amount to R67m as against R57m for 2009/10 ( R10m decrease).

Estimated commitments for 2010/11 amounts to R213m against R276m 2009/10.

SUMMARYPER PROGRAMME

A B C D E F

ProgrammesOriginal Budget

Adjusted Budget

Actual Expenditur

e

Budget Available

[C-D]

Actual Expenditure in % [D/C]

R'000 R'000 R'000 R'000

Programme 1 264,834 282,134 260,153 21,981 92%

Programme 2 7,294,902 7,393,626 7,232,830 160,796 98%

Programme 3 406,933 422,636 391,352 31,284 93%

Programme 4 1,897,051 1,897,551 1,883,285 14,266 99%

Programme 5 11,528,757 11,557,057 11,072,395 484,662 96%

Programme 6 104,508 108,508 78,192 30,316 72%

Total 21,496,985 21,661,512 20,918,207 743,305 97%

SUMMARYECONOMIC CLASSIFICATION

A B C D E F

Economic Classification Original Budget Adjusted Budget

Actual Expenditure

Budget Available [C-D]

Actual Expenditure in

% [D/100]

R'000 R'000 R'000 R'000

Compensation of Employees 370,204 384,404 353,574 30,830 92%

Goods and Services 693,295 726,779 542,480 184,299 75%

Total Transfers & Subsidies 20,403,271 20,505,411 20,004,041 501,370 98%

Payment of Capital Assets 30,715 44,918 17,549 27,369 39%

Payment of Financial Assets - - 563 -563

Total 21,497,485 21,661,512 20,918,207 743,305 97%

Summary Graph Adjusted Budget vs. Actual Expenditure

PROGRAMME 1PER SUB-PROGRAMME

A B C D E F

Subprogramme

Original Budget

Adjusted Budget

Actual Expenditure



R'000 R'000 R'000 R'000

Minister

1,816

1,816

1,809

7 100%Deputy Minister

1,496

1,496

698

798 47%

Management

28,948

28,948

23,501

5,447 81%

Corporate Services

181,013

198,313

178,900

19,413 90%

Office of Accomodation

51,561

51,561

55,245

-3,684 107%

Total

264,834

282,134

260,153

21,981 92%

PROGRAMME 1PER ECONOMIC CLASSIFICATION

A B C D E F

Economic Classification

Original Budget

Adjusted Budget

Actual Expenditure


Actual Expenditur

e in % [D/100]

R'000 R'000 R'000 R'000

Compensation of Employees

111,709

114,409

105,880

8,529 93%

Goods and Services

145,968

149,568

148,656

912 99%

Total Transfers & Subsidies

370

370

551

-

181 149%

Payment of Capital Assets

6,787

17,787

5,061

12,726 28%

Payment of Financial Assets

5

-

5

264,834

282,134

260,153

21,981 92%

PROGRAMME 1Graph Adjusted Budget vs. Actual Expenditure


A B C D E F

Subprogramme

Original Budget

Adjusted Budget

Actual Expenditure



R'000 R'000 R'000 R'000 Maternal Child & Women Health 57,307 57,907 51,238 6,669 88%HIV & AIDS & STI 6,489,300 6,536,300 6,415,851 120,449 98%Communicable Disease 52,722 57,646 54,649 2,997 95%Non-Communicable Disease 665,352 712,552 695,270 17,282 98%TB Control and Management 30,221 29,221 15,822 13,399 54%Total 7,294,902 7,393,626 7,232,830 160,796 98%


A B C D E F


Original Budget

Adjusted Budget

Actual Expenditure


Actual Expenditur

e in % [D/100]

R'000 R'000 R'000 R'000 Compensation of Employees

89,483

90,583 86,801 3,782 96%

Goods and Services

351,840

357,324 257,091 100,233 72%


6,837,256

6,929,396 6,882,760 46,636 99%


16,323

16,323 5,916 10,407 36%


- 262 -262

Total 7,294,902

7,393,626 7,232,830 160,796 98%

Programme 2 Graph Adjusted Budget vs. Actual Expenditure


A B C D E F

SubprogrammeOriginal Budget

Adjusted Budget

Actual Expenditure



R'000 R'000 R'000 R'000 Health Information Research and Evaluation

304,044 312,044

307,657 4,387 99%

Financial Planning and health Economics

36,373 43,776

29,337 14,439 67%

Pharmaceutical Policy and Planning

15,526 15,826

13,060 2,766 83%

Office Standards Compliance

50,990 50,990

41,298 9,692 81%

Total 406,933 422,636

391,352 31,284 93%


A B C D E F


Original Budget

Adjusted Budget

Actual Expenditure


Actual Expenditure in

% [D/100]


64,647 69,647

60,252 9,395 87%

Goods and Services 61,380 58,880

40,461 18,419 69%


277,839 287,839

286,054 1,785 99%


3,067 6,270

4,507 1,763 72%


78 -78

406,933 422,636

391,352 31,284 93%

Programme 3Adjusted Budget vs. Actual Expenditure


A B C D E F

SubprogrammeOriginal Budget

Adjusted Budget

Actual Expenditure



R'000 R'000 R'000 R'000

Human Resources Policy, Research and Planning

8,856 8,856 7,011 1,845 79%

Sector Labour Relations and Planning

3,533 4,033 2,755 1,278 68%

Human Resources Development and Management

1,884,662 1,884,662 1,873,519 11,143 99%

Total

1,897,051 1,897,551 1,883,285 14,266 99%


A B C D E F


Original Budget

Adjusted Budget

Actual Expenditure


Actual Expenditu

re in % [D/100]


17,711

17,711

13,684

4,027 77%

Goods and Services

13,926

13,926

4,058

9,868 29%


1,865,3

87

1,865,387

1,865,387

- 100%Payment of Capital Assets

527

527

119

408 23%


37

-37

1,897,5

51

1,897,551

1,883,285

14,266 99%

Programme 4Adjusted Budget vs. Actual Expenditure


A B C D E F

Subprogramme

Original Budget

Adjusted Budget

Actual Expenditure



R'000 R'000 R'000 R'000 District Health Services

34,718

46,418

28,869

17,549 62%

Environmental Health Promotion and Nutrition

20,185

20,185

10,233

9,952 51%

Occupation Health

32,451

31,851

30,566

1,285 96%

Hospitals and Health Facilities Management

11,441,403

11,458,603

11,002,727

455,876 96%

Total

11,528,757

11,557,057

11,072,395

484,662 96%


A B C D E F


Original Budget

Adjusted Budget

Actual Expenditur

e

Budget Available

[C-D]

Actual Expenditure in % [D/100]


43,900

45,800

43,570

2,230 95%

Goods and Services

59,203

85,603

57,919

27,684 68%


11,422,41

9 11,422,419

10,969,190

453,229 96%Payment of Capital Assets

3,235

3,235

1,678

1,557 52%


38

-38

Total

11,528,75

7 11,557,057

11,072,395

484,662 96%

Programme 5 Adjusted Budget vs. Actual Expenditure


A B C D E F

Subprogramme

Original Budget

Adjusted Budget

Actual Expenditure



R'000 R'000 R'000 R'000

Multilateral Relations

50,736 50,736

35,757

14,979 70%

Food Control and Non-Medical Health product Regulation

7,174 6,174

5,750

424 93%

Pharmaceutical and Related Product Regulation Management

46,598 51,598

36,685

14,913 71%

Total

104,50

8

108,50

8 78,192

30,316 72%


A B C D E F


Original Budget

Adjusted Budget

Actual Expenditure


Actual Expenditure

in % [D/100]


42,754

46,254

43,387

2,867 94%

Goods and Services

60,978

61,478

34,295

27,183 56%


-

-

99

-99


776

776

268

508 35%


-

-

143

-143

Total

104,508

108,508 78,192

30,316 72%

Programme 6 Adjusted Budget vs. Actual Expenditure

ROLL-OVERSOut of the total under expenditure of R743m , only an

amount of R285m has been requested for roll over as follows:

Computer equipment for FCL Pretoria - R61,000 Payment Webcam - capital equipment for Security –

R100,000 Hospital Revitalization Grant , for Gauteng committed

funds towards services rendered at Chris Baragwanath hospital - 72,6 million, 46 million for Eastern Cape and funding of 5 PPP projects and 5 national projects to improve infrastructure planning and procurement of health facilities for the amount of R100 million.

Consultancy services for services rendered by Lung Institute – R232,000

ROLL-OVERS - CONT….. Advertising- Bulk Media buying-GAAP - R7,5 million Printing and payment to venues & facilities for Women's

Health & Genetics activities – R1,3m Printing of Patient cards for the TB and TB prevalence

survey – R5,2 million Balance of rental claim from Dept of Public Works for Civitas

building. R64 million Transfer of R6 million to NHLS for the GeneXpert module R21 m to purchase of Servers for the NHI IT systems and to

address IT security deficiencies. Laboratory equipment- FCL CPT - R1 million Procurement of IT server - R5,5 million NHLS Cancer register - R415,000 HIV/NGO NGO transfers- R600,000

ROLL-OVERS - CONT…..The following were requested for roll-overs but

not approved internally: The roll over application for the amount of R3,5m for the

Office of Standards was not approved ,due to a recurring trend of under expenditure.

Purchase of the PMDS server : Department must use the current capital funding under 2011/12 to fund the PMDS server based on recurring under expenditure year on year.

Love life transfer for the amount of R38m, the balance to be paid to Love Life should be paid from the (2011/12) current financial year's funding of Love Life due to the current review of Love Life funding across all other government Departments.

eHR project proposed rollover not approved due to the fact that it is still under investigation. The Department to approach Treasury during the Adjustment Estimates should the need arise during the current financial year

ROLL-OVERS - CONT…..

• All managers requested Roll-over are requested to ensure that funds are spent within the timeframe as indicated in the roll-over request as follows:

• IT Capital equipment by May 2011• NHLS Cancer Register - May 2011• GeneXpert transfer ,Love Life & NGO Transfer- May 2011• Consultancy services for services rendered by Lung

Institute – April 2011• Venues , printing - May 2011• Media buying to GCIS - June 2011

GOODS AND SERVICES UNDER EXPENDITURE R'000

Budget 726,779 Expenditure 542,480

Balance 184,299 Less: 271,163 Commitments 213,784

Accruals 57,379

Less: Earmarked Funds 13,631

TB- National Prevalence Survey and Strengthen Management 11,083

Development new hospital reimbursement mechanism linked to case mix 1,000

EMS 2010 Unit 1,548

COMMITMENTS AND ACCRUALS

2010/11

R'0002009/10

R'000

Commitments 213,784 276,075

Accruals 57,379 65,324

Programme 1 7,978 9,333

Programme 2 6,604 47,788

Programme 3 41,852 4,561

Programme 4 471 257

Programme 5 254 2,787

Programme 6 220 598

TRANSFER PAYMENTS

2010/11

R'0002009/10

R'0002008/09

R'000

Budget 20,505,411 17,248,335 14,550,312

Expenditure 20,004,041 16,863,440 14,188,884

Balance 501,370 384,895 361,428

Love life 38,690 36,766 27,317

Hospital Revitalisation Grant 452,564 324,930 323,904

CAPITAL EQUIPMENT

2010/11 R'000

2009/10 R'000

Budget

44,918 29,741

Expenditure

17,549 13,408

Balance 27,369 16,333

Roll-overs

Request from 09/10 FY for IT Equipment

14,203

Department requested Roll-over of R14,2 million from 2009/10. Which was approved.

IT equipment Roll-over for the amount of R21million was requested for IT Deficiencies and the migration from Novel to Microsoft as well as the NHI IT preparations for the 2010/11.

Comparisons of years Comments

IN CONCLUSION The under expenditure indicated

does not reflect lack of capacity to spend the appropriated funds since the funds have been committed.

The under expenditure for the Revitalization grant will be presented in detail with remedial action reflected.

2011/06/03

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