Public hearing on conditional grants and capital expenditure: 3rd quarter
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Transcript of Public hearing on conditional grants and capital expenditure: 3rd quarter
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Public hearing on conditional grants and capital expenditure: 3rd quarter
Presentation to Select Committee on FinanceNorthern Cape’s Department of Agriculture and Land Reform19 February 2007
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Overview Equitable share versus Conditional Grant
allocation 3rd quarter expenditure on conditional grants Conditional grant spending vs. cash allocation Conditional Grant expenditure Jan 2007 Expenditure trends per month Situation analysis on conditional grants Monitoring and Evaluation Challenges for conditional grants Plans to improve delivery on conditional
grants
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Trends: equitable share versus conditional grant allocation
SUMMARY COMPARISON BASED ON ORIGINAL ALLOCATIONS
05/06 06/07 Increase % increase
Equitable Share 97,002 103,664
6,662 7%
Conditional Grants 18,320 24,782 6,462 35%
115,322
128,446
13,124 11%
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3rd quarter expenditure – Conditional Grants
Conditional Grant 2006/2007 allocation
Budget Actual %
CASP 22,496 12,460 55%
LAND CARE 8,023 6,019 75%
PIG 4,808 2,632 55%
TOTAL 35,327 21,111 60%
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Conditional Grant spending versus cash allocation
Conditional Grant 3rd quarter allocation
Cash received Actual spent %
CASP 12,622 12,460 99%
LAND CARE 4,629 6,019 130%
PIG 1,611 2,632
163%
TOTAL 18,862 21,111 112%
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End January 2007 expenditure – Conditional GrantsConditional Grant 2006/2007 allocation
Budget Actual %
CASP 22,496 15,559 69%
LAND CARE 8,023 6,626 83%
PIG 4808 2797 58%
TOTAL 35,327 24,982 71%
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Expenditure trends per monthConditional Grant April May June July Aug Sep Oct Nov Dec Jan Total
CASP 820 1826 3202 809 773 1660 737 363 2269 3100 15559
LAND CARE 127 323 810 803 44 536 958 1042 1376 607 6626
PIG 0 0 63 11 184 887 37 202 1248 165 2797
TOTAL 947 2,150 4,075 1,624 1,001 3,084 1,732 1,607 4,893 3,872 24,982
0
5000
10000
15000
20000
25000
30000
April May June July Aug Sep Oct Nov Dec Jan Total
CASP
LAND CARE
PIG
TOTAL
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Situation Analysis - CASP Situation analysis
28 projects implemented during 2005/6 with a budget of R 13,148m Struggled to complete all projects and thus requested R6,719
m rollover Only 12 new projects approved for 2006/7 with budget
of R15,777 m Officials concentrated on completing projects remaining
from 2005/6 and implementing new projects for 2006/7 Expenditure 3rd quarter
The total transfer received from National to Province by the third quarter is R 12,622 million and R12,460m actual expenditure as at end December ’06.
99% of the transfer received was spent
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Situation Analysis – Land Care Situation analysis
15 projects implemented during 2005/6 with a budget of R2,000 m Requested rollover of R1,873 m
15 projects approved for 2006/7 with a budget of R5,785 m Expenditure
R 4,629 m transferred from National to Province by the 3rd quarter and R 6,019 m actual expenditure as at end Dec
’06. 130% of transfer received was spent
Issues requiring on-going attention Monitoring of the implementation phase Conflict management within communities/project
beneficiaries All projects tenders already advertised Project schedule still on track
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Situation Analysis - PIG Situation analysis
8 projects implemented during 2005/6 with a budget of R3,172
R1,588 requested for roll over 5 projects approved for 2006/7
Expenditure Transfer from National to Province by 3rd quarter is
R1,611 R2,632 m actual expenditure as at end December
’06. 163% of the transfer received was spent
Issues requiring on-going attention PIG projects in tendering phase during 1st quarter Implementation only in 2nd and 3rd quarter
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Monitoring and Evaluation Senior management evaluates
expenditure monthly Project Coordinating Committee
established and meetings held quarterly Assesses project proposals Recommends for approval Assesses and evaluates progress
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Challenges for conditional grants Same officials have to implement new projects
and provide after-care at the same time More demands by other land reform beneficiaries
especially the more they see implementation and changes in the neighbouring approved projects or communities
Credit facilities for BEE contractors problematic thus a delay in delivery of material and other services
Some of the suppliers do not deliver material on the agreed timeframes and that delays payment
Some of the companies experience cash flow problems during the course of completing a project
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Plans to improve delivery on conditional grants
Conditional GrantSpent byFebruary 15th
ProjectionFebruary 28th
ProjectionMarch 15th
ProjectionMarch 27th
TotalProjections
CASP 756 2,500 2,744 937 6,181
LAND CARE 267 700 430 1,130
PIG 235 889 887 1,776
TOTAL 1,258 4,089 4,061 937 9,087
2006/7 projectsEnsure that 2006/7 projects are implemented according to plansNot to allow any roll-overs from 2006/7Monitor and assess implementation through
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Plans to improve delivery on conditional grants
Monthly review of expenditure Holding quarterly reviews with project leaders Senior managers visiting projects regularly to monitor
progress
2007/8 projects Completed business plans for 2007/8 projects by
end of September 2006 Advertise tenders between Jan-March 2007 Start implementing as of April 2007
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Trends in capital expenditure
Programmes for 2006/2007
Main Appropriatio
nR'000
3rd quarter spending
R'000 % spent
Administration 260 664 255%
Sustainable Resource Management 8053 2494 31%
Equitable 30 17 57%
Conditional Grants 8,023 2477
31%
Farmer Support and Development 28,419 12327 43%
Equitable 1,115 1,406 126%
Conditional Grants 27,304 10921 40%
Veterinary Services 111 286 258%
Technological Research and Development 190 203 107%
Agricultural Economics 31 0 0.00%
Total 37,064 15974 43%
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Solar Power for Stock Watering
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Sub surface Drainage Installation
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Sub surface Drainage Installation
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Soil Conservation
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THANK YOU