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Public hearing 1st quarter Provincial Budget Report on conditional grants and capital expenditure

Select Committee on FinancePresentation by Northern Cape’s Department of Agriculture and Land Reform19 September 2006

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Overview Departmental Budget for MTEF period Equitable share versus Conditional Grant

allocation Executive summary on conditional grants Situation analysis on conditional grants 1st quarter expenditure on conditional grants Conditional grant spending vs. cash allocation Expenditure trends per month Monitoring and Evaluation Challenges for conditional grants Plans to improve delivery on conditional grants Additional information

Data on trends on Conditional Grants Conditional Grant expenditure Aug 2006

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Budget for MTEF period

  06/07 07/08 08/09

Programme 1 30,290 29,447 30,919

Equitable Share 30,002 29,447 30,919

Earmarked 288 0 0

Programme 2 14,544 14,855 15,585

Equitable Share 8,759 8,780 9,219

Conditional Grant: Land Care 5,785 6,075 6,366

Programme 3 47,154 69,880 81,417

Equitable Share 29,657 30,409 31,929

CASP 15,777 28,555 29,926

PIG 1,720 7,220 8,720

Earmarked - improved agricultural support 0 3,696 10,842

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Budget for MTEF period  06/07 07/08 08/09

Programme 4 18,322 16,941 17,788

Equitable Share 17,322 16,941 17,788

Conditional Grant: PIG 1,000 0  

Programme 5 14,979 14,967 17,640

Equitable Share 13,779 13,467 14,140

Earmarked - Research and Development 700 1,500 3,500

Conditional Grant: PIG 500 0 0

Programme 6 3,157 2,122 2,228

Equitable Share 2,157 2,122 2,228

Earmarked 1,000 0 0

Statutory 852 907 952

Total 129,298 149,119 166,530

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Trends: equitable share versus conditional grant allocationSUMMARY 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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Region Name Beneficiaries

Jobs

Type Amount

Namaqua

Coboop 4 10 Commonage R530 200

Goodhouse 55 40 Communal R1 500 000

Borehole testing unit

0 0 Provincial R80 000

Sub- total 59 50 R2 110 200

Siyanda Rooipan 8 61 Commonage R1 150 000

Groenwater

100 20 Restitution R1 590 000

Blocuso 252 40 Commonage R3 098 900

Sub-total 360 121 R5 838 900

Executive summary: CASP 2006/07

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Executive summary: CASP 2006/07

Region Name Beneficiaries Jobs Type Amount

Frances Baard

Kopano 30 34 LRAD R800 000

Mayeng 30 77 Restitution R2 707 000

Sub-total 60 101 R3 507 000

Kgalagadi Elgon 22 10 LRAD R600 000

Kono 500 35 Restitution R900 000

Animal Health

503 19 All R1 500 000

Sub-total 1025 65 R3 000 000

Pixley Ka Seme

Elim 10 10 LRAD R142 100

Bakenskop 10 10 LRAD R401 800

Sub-total 20 20 R543 900

TOTAL 1524 366 R15 000 000

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Executive summary: Landcare 2006/07

Project name Number of beneficiaries

Number of jobs

Amount

Northern Cape LandCare Awareness

300 560 500

Siyanda

High School Keimoes 42 40 000

Kakamas Junior LandCare 44 45 000

Loubos Junior LandCare 42 38 000

Ganzemond 12 14 265 000

Kenhardt Meent 8 14 457 400

Total for Siyanda 148 28 R845 400

Kgalagadi

Ga-Segonyana Commonage

20 300 000

Total Kgalagadi: 20 R300 000

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Executive summary: Landcare 2006/07

Project name Number of beneficiaries

Number of jobs

Amount

Namaqua:

Boesmansplaat 14 14 271 800

Tweefontein 10 10 728 700

Springputs 20 397 500

Dabenoris 20 475 000

Pofadder Commonage 40 20 130 400

Brandvlei Commonage 25 25 277 200

Boschmansberg 14 14 758 700

Total for Namaqua 103 123 3 039 300

Grand Total 551 171 5 510 200

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Situation Analysis - CASP Situation analysis

28 projects implemented during 2005/6 with budget of R 13,148 m Struggled to complete all projects and thus requested R6,718 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 1st quarter

R 1,578 million transferred from National to Province in 1st quarter and R 5,842 m actual expenditure as at end June ’06.

R 4,242m for 2005/6 projects - roll over and R 1,600m for 2006/07 projects

63% of rollover allocation spent 10% of 06/07 allocation spent 26% of (rollover + 06/07 allocation)

Provincial contribution for 2006/7 - R18,488m R8,2m – Farmer support and settlement R3 m – Sustainable Resource Management R5,3 – Vet services R0,7m – research R1m – Agric economics R0,288m – MIS

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Situation Analysis – Land Care Situation analysis

15 projects implemented during 2005/6 with 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 579 000 transferred from National to Province in 1st quarter and R 2,108 m actual expenditure as at end June ’06.

R1,589 m for 2005/6 projects - roll over and R 519 000 for 2006/07 projects

52% of rollover allocation spent 5% of 06/07 allocation spent 16% of (rollover + 06/07 allocation)

Issues requiring on-going attention Monitoring of the implementation phase Conflict management within communities/project beneficiaries Most 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 budget of R3,172

R1,588 requested for roll over 5 projects approved for 2006/7

Expenditure No transfer from National to Province in 1st quarter and R 63 000 actual expenditure as at end June ’06.

R 46 000 for 2005/06 projects - roll over and R 17 000 for 2006/07 projects

3% spent on rollover allocation 1% spent on 06/07 allocation 1% of (rollover + 06/07 allocation)

Issues requiring on-going attention PIG projects in tendering phase during 1st quarter Implementation only in 2nd and 3rd quarter

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1st quarter expenditure – Conditional GrantsConditional

Grant Rollover2006/2007

allocation Overall

 Budg

etActu

al %Budg

etActu

al %Budg

etActu

al %

CASP 6,718 4,24263%

15,777 1,600

10%

22,495 5,842

26%

LAND CARE 1,873 98352% 5,785 278 5% 7,658 1,261

16%

PIG 1,588 46 3% 3,220 17 1% 3,277 63 1%

TOTAL10,17

95,27

152%

24,782

1,895 8%

34,961

7,166

20%

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Conditional Grant spending versus cash allocation

Conditional Grant 1st quarter allocation

  Cash received Actual spent %

CASP 1,578 5,842 370%

LAND CARE 579 1,261 218%

PIG   63  

TOTAL 2,157 7,166 332%

Conditional Grant Total at end Aug 2006

Cash received Actual spent %

CASP 7,100 7,424 105%

LAND CARE 2,604 2,108 81%

PIG 1,611 225 14%

TOTAL 11,315 9,757 85%

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Expenditure trends per monthConditional

Grant April May June July Aug Total

CASP 819 1,821 3,202 809 773 7,424

LAND CARE 127 324 810 803 44 2,108

PIG 0 0 63 0 162 225

TOTAL 946 2,145 4,075 1,612 979 9,757

819

1,821

3,202

773

127324

810

440 0 63 0162

809

803

0

500

1,000

1,500

2,000

2,500

3,000

3,500

April May June July Aug

CASP

LAND CARE

PIG

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Trends in capital expenditure

Financial Year

Final Appropriatio

nR'000

Actual spentR'000 % spent

2004/2005 4,376 1,892 43.24%

2005/2006 21,756 21,648 99.50%

Programmes for 2006/2007

Main Appropriatio

nR'000

1st quarter spending

R'000 % spent

Administration 260 25 9.62%

Sustainable Resource Management 30 0 0.00%

Equitable 30 0 0.00%

Conditional Grants 0 0  

Farmer Support and Development 1,115 1,724154.62

%

Equitable 200 0 0.00%

Conditional Grants 915 1,724 188.42%

Veterinary Services 111 59 53.15%

Technological Research and Development 190 5 2.63%

Agricultural Economics 31 0 0.00%

Total 1,737 1,813104.38

%

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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

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Plans to improve delivery on conditional grants 2006/7 projects

Ensure that 2006/7 projects are implemented according to plans Not to allow any roll-overs from 2006/7 Monitor and assess implementation through

Monthly review of expenditure Holding quarterly reviews with project leaders Senior managers visiting projects Where possible appoint service providers especially for independent

evaluation on progress and impact Implement recently approved mentorship programme for after care

services to projects already implemented 2007/8 projects

Complete 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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