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DEPARTMENT OF HEALTH AND SOCIAL DEVELOPMENT

DEPARTMENT OF HEALTH AND SOCIAL DEVELOPMENT REPORT TO THE SELECT COMMITTEE ON FINANCE ON CONDITIONAL GRANTS AND CAPITAL EXPENDITURE 13 NOVEMBER 2007 PRESENTED BY HOD: Dr. J.V DLAMINI ON BEHALF OF THE MEC HONOURABLE S.C SEKOATI OLD ASSEMBLY CHAMBER RSA PARLIAMENT CAPETOWN.

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DEPARTMENT OF HEALTH AND SOCIAL DEVELOPMENT

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  1. DEPARTMENT OF HEALTH AND SOCIAL DEVELOPMENT REPORT TO THE SELECT COMMITTEE ON FINANCE ON CONDITIONAL GRANTS AND CAPITAL EXPENDITURE 13 NOVEMBER 2007 PRESENTED BY HOD: Dr. J.V DLAMINI ON BEHALF OF THE MEC HONOURABLE S.C SEKOATI OLD ASSEMBLY CHAMBER RSA PARLIAMENT CAPETOWN

  2. 1. OUTCOME OF AUDITED QUARTER PROVINCIAL BUDGET REPORT

  3. 1.1 DEATIL QUARTERLY REPORTS FOR 2006/7 CONDITIONAL GRANTS

  4. 1.2 REASONS FOR OVER/UNDER SPENDING ON CONDITIONAL GRANTS 2006/7 FY 1.2.1 HIV/AIDS : Under spending R10,648 000.00 • The under spending was due to delay in receipts of invoices for goods and services from the suppliers. • The funds were fully committed in the year under review. • The total amount has been requested as a rollover and National has already approved the request. 1.2.2 FORENSIC PATHOLOGY SERVICES: Under spending R3,548 000.00 • The under spending was due to delay in the receipts of invoices for mortuary buildings from the contractors. • The delay in the delivery of equipment and furniture to the tune of R704 thousand also caused the under spending. • The funds were fully committed in the year under review. • The total amount has been requested as a rollover and National has already approved the request.

  5. 1.2 REASONS FOR OVER/UNDER SPENDING ON CONDITIONAL GRANTS 2006/7 FY Cont… 1.2.3 HEALTH PROFESSIONAL TRAINING AND DEVELOPMENT Over Spending R875 000.00 • The total budget was utilized in line with the business plan. • The over expenditure was transferred to equitable share. 1.2.4 HOSPITAL REVITILISATION: Over spending R54,582 000.00 • Provincial Treasury gave a directive to continue spending on hospital revitalization conditional grant with a commitment that it will be funded this resulted in an over expenditure on building of R54,6 million on this grant. 1.2.5 NATIONAL TERTIARY SERVICES • The total budget for the grant was utilized in line with the business plan.

  6. 2. SIX MONTHS SUMMARY OF EXPENDITURE FOR 2007/ 08 :

  7. 2.1 DETAILS: 2007/8 FINANCIAL YEAR CONDITIONAL GRANTS QUARTELY REPORTS

  8. 2.2 Reasons for variances on conditional grant 2.2.1. HIV/AIDS = 48, 6% • The slight under spending from the norm is due to the equipment which has been planned to be procured during the third and fourth quarter. • The total budget for the grant including the expected rollover will be utilized in full 2.2.2. FORENSIC PATHOLOGY = 42, 3% • There has been a delay in the appointment of forensic Pathology Services staff but the posts have already been advertised and will be filled in the third quarter • Autopsy machines and protective clothing have been procured at R3.5m and delivery is expected in the third quarter • An amount of R13 million has already been certified for payment to contractors for building of mortuaries. • The budget will be fully utilized by the end of the financial year including the amount of R3 548 000.00 requested for rollover

  9. 2.2 Reasons for variances on conditional grant Cont… 2.2.3 HEALTH PROFESSIONAL TRAINING AND DEVELOPMENT = 42, 6% • There has been a delay in the transfer of a yearly amount of R7 200 000.00 to United Nation Voluntary (UNV) doctors programme due to non submission of audited statements as agreed. • An amount of R2 500 000.00 is also due to be transferred to the University of Limpopo for procurement of Library materials. • The budget for the grant will be utilized in full for this year. 2.2.4 HOSPITAL REVITILISATION = 45, 1% • The main reason for under spending is due to the delay by the implementing agent to appoint two contractors, one in Letaba Hospital and the other one in Maphutha Malatjie Hospital. • The tenders for the appointment of the two contractors had closed on the 5 October 2007 and hopefully appointments will be made very soon. • The under spending in the two contractors will be shifted to other contracts within infrastructure development which will be able to fast track their projects. • The budget will be utilized in full for this year.

  10. 2.2 Reasons for variances on conditional grant Cont… 2.2.5. NATIONAL TERTIARY SERVICES = 34, 1% • The main item that is under spending for now in this grant is machinery and equipment which has been procured from overseas and delivery is expected during the third and fourth quarter. • There is an amount of almost R6 000 000.00 that is being owed to Gauteng province for tertiary services patience referred to them. The amount is currently being verified and will be paid as soon as confirmed. • The Renal dialysis PPP has increased their capacity and the expenditure for the grant in the fourth quarter will increase. • In terms of the plan the budget allocated for the grant will be utilized in full by the end of the financial year. 2.2.6 CAPITAL EXPENDITURE (INFRASTRUCTURE) • Infrastructure excluding revitalization grant expenditure is at 35,2% which is less than the expected norm of 50%. • Payment is dependant on stages of construction and will begin to pick up towards the end of financial year. • The Limpopo Province has currently a cash flow problem and an amount of R184 million has been requested to be surrendered from the department to address the problem. Infrastructure is one of the areas where cutting will be made to contribute to the required amount.

  11. 3. MONITORING MECHANISMS • Monthly reports for conditional grants are prepared and submitted to Provincial Treasury and National department of Health. • Also the Departmental performance reviews are held to asses the actual expenditure, analytical projections and progress towards achieving the set target on the business plans as well as infrastructure plans.

  12. THANK YOU THE END

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