Presented by Cathy Motsisi Chief Financial Officer

1. Presented by Cathy MotsisiChief Financial Officer Monthly Financial Performance report 31 December 2011

2. Summary: Expenditure per Economic Classification –(Linear Benchmark 75%) 7% lag from the benchmark of 75%

3. Financial Performance per Programme –(Linear Benchmark 75%)

4. Expenditure per economic classification- Programme One

5. Expenditure per economic classification- Programme Two

6. Expenditure per economic classification- Programme Three

7. Expenditure per economic classification- Programme Four Cost drivers: Payment to Agrement SA = R9,8 mil Border Fence = R 6 mil Independent R1,1 mil ( Construction Policy) SAIA R1mil

8. Expenditure per economic classification- Programme Five

9. Budget and Expenditure per Branches and Regional offices

10. Analysis of the Current Budget per Branch - 31 December 2011

11. Analysis of the Regions Budget per Branch - 31 December 2011

12. Expenditure Analysis- Earmarked Funds 31 December 2011

13. Expenditure Analysis- Earmarked Funds Cont.

14. Notes to the expenditure Compensation of employees Expenditure under compensation of employees is above the guideline by 1%. The major contributing factors are the new posts created, performance bonus payments and overtime. New posts created for the following units: - Information System - Supply Chain Management (Movable Assets) - Finance (Compliance and Trading Entity) - Security Management and Human Resource

15. Notes to the expenditure • Goods and services • Expenditure for goods and services for month ended November 2011 is R468 million, and expenditure is equivalent to 78% of the total allocation of R 604 million. • Payment for energy efficiency has been processed, and expenditure is classified under advance since the work is still in progress. Once report received expenditure will be moved to voted fund. • Office Accommodation expenditure for the end of November is R242 million and expenditure is equivalent to 60 % of the total allocation.

16. Notes to the expenditure • Goods and services • In comparison with expenditure for the expenditure for the same period last year, the following were identified as cost pushing items:

17. Notes to the expenditure on Goods & Services Telephone Services • Telephone expenditure for the month ended December is 8% higher in comparison to the same period last financial year. • The following offices have contributed significantly to the high expenditure: - Head Office R 4.727 million - Pretoria Region R 2.395 million - Mmabatho Region R 1.334 million - Cape Town Region R 1.228 million - Durban Region R 1.197 million

18. Notes to the expenditure on Goods & Services cont. State Functions • Expenditure of R 29.7 million relates to both state events and state funeral. Professional Staff • Expenditure for Professional staff amounting to R26.178 million represents an increase of 85% for the same time last year. The cost drivers are Information Systems = R 15.3 million and Construction Policy for Agrement SA – R9 million. Fuel & Fleet Services % • Expenditure for fuel for fleet services of R22.355million represents an increase of 67% for the same time last financial year. The following offices are showing high spending: - Head Office R 1.902million - Cape Town R 8.649 million - Pretoria Region R 2.058 million - Mafikeng Region R 1.535 million - Johannesburg R 1.129 million - Durban Region R 1.603 million - Umthatha R 1.132 million

19. Notes to the expenditure on Goods & Services cont. Travel & Accommodation • Expenditure for accommodation is 107% higher in comparison to the same time last financial year. Head office accounts for 41% of the total expenditure of R22 304 million. • The following units/branches within head office have expenditure exceeding a million: • Expanded Public Works Programme R 2.754 million • Projects R 1.187 million • Corporate Services R 1.540 million • Ministry R 1.229 million • Expenditure for air transport is higher by 48% in comparison to the same time last financial year. The following units in Head office accounts for 65% of the total expenditure of R23 017 million: • Expanded Public Works Programme R 3.327 million • Corporate Services R 2.443 million • Projects R 1.846 million • DG and COO including direct reports R 1.597 million

20. Debtors and Revenue Management

21. BAS Debtors December 2011

22. Staff & Suppliers Debtors Age Analysis 87% of the debt is older than 3 years = doubtful debts

23. Staff & Suppliers Debtors Age Analysis Per Region

24. Debtors Analysis • Other Debts • Head Office • South African Institute of Architects (SAIA) – R1,6 million • SAIA won the bid to host the UIA World Congress in Durban in 2014 and undertook to pay UIA the required amount of €550 000 in seven installments. SAIA requested DPW to provide the required guarantee on their behalf. • The amount of R1,5m was paid to UIA on behalf of SAIA. In terms of the MOU SAIA undertook to repay DPW plus interest any amount paid on their behalf for the guarantee called upon. • DPW may be required to make other payments in terms of the guarantee. • This account will be outstanding till 2014 after the conference where SAIA is expecting to generate revenue. No interest is being charged on this account at this stage. Finance wrote a letter as part of the process to inform debtors about outstanding balance.

25. RENTAL DEBTORS

26. Ministers/DMs/MPs Rental Debtors Age Analysis31 December 2011

27. I Thank You