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NCOP PRESENTATION ON CONDITIONAL GRANTS AND CAPITAL EXPENDITURE – NORTH WEST.

NCOP PRESENTATION ON CONDITIONAL GRANTS AND CAPITAL EXPENDITURE – NORTH WEST. FOURTH QUARTER ENDING 31 MARCH 2006 2006-05-03. PURPOSE.

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NCOP PRESENTATION ON CONDITIONAL GRANTS AND CAPITAL EXPENDITURE – NORTH WEST.

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  1. NCOP PRESENTATION ON CONDITIONAL GRANTS AND CAPITAL EXPENDITURE – NORTH WEST. FOURTH QUARTER ENDING 31 MARCH 2006 2006-05-03

  2. PURPOSE • To provide information to the NCOP on data on trends in allocations, transfers and actual expenditure of all conditional grants and capital expenditure managed by the Department. • A brief assessment of the monitoring capacity for 2005/06. • Over / under spending and the capacity constraints. • 2006/07 Service Level Agreements and business plans progress.

  3. OVERVIEW • 8 CONDITIONAL GRANTS MANAGED BY DOH NW. • CONSTITUTES 14% OF TOTAL BUDGET. • THERE HAS BEEN A MARKED INCREASE IN THE ALLOCATIONS FOR THE PROVINCE WITH A VIEW OF CLOSING THE EQUITY GAP WITH OTHER PROVINCES. • SIGNIFICANT IMPROVEMENT IN SPENDING HAS BEEN REALISED FOR THE YEAR UNDER REVIEW (2005/06) • STRENGTHENING OF PROJECT MANAGEMENT IN RELATION TO CONDITIONAL GRANTS HAS IMPROVED THE MONITORING CAPACITY. • % OF OVERALL UNDER EXPENDITURE REDUCED TO 9%.

  4. TRENDS IN EXP. & ALLOCATIONS

  5. TRENDS IN EXP, TRANSFERS. & ALLOCATIONS • TRANFERS FROM NATIONAL HEALTH HAS BEEN RECEIVED IN ALL FINANCIAL YEARS AND GRANTS WITH THE EXCEPTION OF THE FOLLOWING: • AN AMOUNT OF R5.915m WAS WITH HELD FOR HIV&AIDS – 2004/05. • AN AMOUNT OF R40m WAS WHITHHELD FOR REVITILIZATION – 2005/06 AS PER AGREEMENT.

  6. EXPENDITURE FOR 2005/06 FOURTH QUARTER

  7. EXPENDITURE FOR 2005/06 FOURTH QUARTER

  8. OVER/UNDER EXPENDITURE • Total allocation for the year under review was : R422,738m • Total amount unspent : R36,322 • which is 8.59% of the overall allocation. • The 05/06 conditional grants expenditure performance is the best in years.

  9. HOSPITAL REVITALIZATION GRANT. • To provide funding to enable provinces to plan, manage, modernise, rationalise and transform the infrastructure, health technology, organizational management & development and monitoring and evaluation of hospitals in line with national policy objectives.

  10. HOSPITAL REVITALIZATION

  11. HOSPITAL REVITALIZATION (cont) • The balance of the allocation against expenditure amounts to 25%. • An amount of R25m has been processed for payment to the implementing agent already. • The expenditure will be incurred as soon as transfers from NDoH is received. • The full amount of R25,350m has been requested for a roll over from the provincial Treasury.

  12. HOSPITAL REVITALIZATION (cont) • Capacity challenges: • Human Resource capacity both within and with implementing agents. • Incapacity of some consultants and small emerging contractors to handle projects with the required competencies.

  13. Medico Legal Mortuaries • Progress: • The Programme has the costed operational plan for the year and the necessary staff structure has been finalised. • All facilities have been audited and are in the process of being upgraded.

  14. Medico Legal Mortuaries • Challenges: • The funds from the conditional grant of the Programme were only received in December 2005. Achievements: • Commitments for equipment. • Posts advertised already. • Approved business plan.

  15. SERVICE LEVEL AGREEMENTS/ BUSINESS PLANS. • A Service Level Agreement is in place between the Departments of Health and Public Works. • Business plans have been forwarded to NDoH for all the conditional grants and awaiting approval. • Transfers from NDoH have been received of all Conditional Grants during the month of April 2006.

  16. EQUIPMENT BUDGET V/S EXPENDITURE FOR FIN. YEAR 05/06

  17. VARIENCE REPORT • The ratio 70/30 was used to purchase ambulances and patient transport. • The variance of R4,487 was earmarked for mobile clinics which could not be delivered before the end of the financial year. • The procurement will therefore have to be made in the new financial year.

  18. VARIENCE REPORT cont… • The R9.8 million was used to purchase the 18 ambulances and 14 planned patient transport. • The budget for Office furniture was transferred to Public Works however, Public Works could not supply the Department due to insufficient allocation. • Medical equipment were purchased for programs 2 – District Health Services and Program 4 – Provincial Hospital Services.

  19. VARIENCE REPORT cont… • The variance of R7 million will be rolled over into the current financial year to enable the Forensic Pathology Services to purchase mortuary vehicles. • Also the variance of R2.8 million for conditional grants under program 8 - equipment for clinics would be rolled over into the current budget. • The variance on other equipment is due to committed orders which had to be cancelled due to delivery after March 31st.

  20. CONCLUSION • The Department is confident that systems are now in place to monitor the performance of conditional grants in line with DORA hence the improved outcome for the 2005/06 financial year.

  21. CONCLUSION CONT!! • We will work closely with the CIDB (Construction Industry Development Board) to use their classification of contractor competence, in appointment of contractors.

  22. CLOSURE Thank you for listening

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