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Feedback on road budgets

Feedback on road budgets. RPF November 2001. Contents. Background Process Information requested Information obtained Issues Current data Road forward. Background. Resolution at RPF May 2001 Data on budgets be adopted as basis and be expanded for future reports

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Feedback on road budgets

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  1. Feedback on road budgets RPF November 2001

  2. Contents • Background • Process • Information requested • Information obtained • Issues • Current data • Road forward

  3. Background • Resolution at RPF May 2001 • Data on budgets be adopted as basis and be expanded for future reports • Funded by Gautrans, Sabita and C&CI • Focused on provincial and national data in this presentation

  4. Aims of the project • Provide information on: • Budgets • Selected infrastructure management aspects • Southern African road authorities • Actions taken by road authorities • Performance against budgets.

  5. Process followed • Contacted road authorities – chief engineers etc • Slow response – regular communications • Other sources identified • Attempted to paint full picture • Verified with different sources

  6. Responses • Positive responses re participation from • 9 provinces • NRA • 5/6 metros • 2/5 toll concessionaires • Data for • 8 provinces / NPRA • NRA • 2 metros • 1 toll concessionaire • SADC – appears positive – needs overall approval

  7. Information required • Total budgets for department • Total road authority budgets • Breakdown of road budgets • Budgets for specific items (i.e. bitumen and cement) • Grants and transfers and non-treasury expenditure • Audited figures previous years • Changes to budgets • Quarterly performance against budget • Construction and rehabilitation programmes

  8. Information obtained • Sources • Contacts in authorities • Budget speeches • Web-published data • Auditor-General reports • Treasury reports • Problems encountered • Response time • Manpower • Validity of data – only Auditor-General figures are final

  9. Issues • Manpower – skills match problem • PFMA (Public Finance Management Act) – public information • More effective and efficient delivery, better value for money, improved public services • Develop capacity 2001/2002 • Internal control and audit units • Departmental structures • Availability of information • Budget and management systems • Progress against budget • Discrepancies in road network lengths and budget figures from different sources

  10. Example of contracts management – spreadsheet

  11. Backlog cost estimates

  12. Backlog issues • Estimated at R 23 billion • Basis for calculation of backlog in network • Target level of service • Target network profiles • Aspects included in backlog work • Need similar foundations for estimates to be credible

  13. Current information • Budgets • Progress against budgets • Longer term budget trends • Audits • Grants • Planned expenditure • Road networks

  14. “Transport” Department Budgets

  15. “Roads” section budgets – 2001/2002 ?

  16. Transport and Roads % of Provincial Budgets ?

  17. Progress against budgets - departmental

  18. Progress against budgets (capital) - departmental

  19. Progress against budgets (current) - departmental

  20. Progress against budgets • Data for the whole department • Capital progress not necessarily shown when funds are allocated and not yet spent • Need to ensure that similar figures are reported

  21. Spending on national and provincial roads – Intergovernmental Fiscal review

  22. Auditor-General information

  23. Grants • Supplementary Allocation grant • Ensure credible provincial budgets and adequate provision for infrastructure and social sectors • Ensure progress in implementing budget and financial management reforms • Provincial Infrastructure grant • Fund provincial infrastructure (roads, schools, health buildings) • Fund reconstruction of 2000 flood damage

  24. Grants – 2001/2002

  25. Grants progress – 2001/2002

  26. Actual expenditure – 1997/98 to 2000/01 • Road expenditure 2000/2001- 2,9 % of total provincial expenditure • 33% of road expenditure – new and major rehab 1997/1998 to 2000/01 • 26% of provincial expenditure – routine maintenance 1997/98 to 2000/01

  27. Provincial capital expenditure on roads

  28. Planned expenditure – 2001/2002 • EC – Road maintenance R 69 million • WC – Major improvement projects (2000-2005) R 244 million • Gautrans – maintenance / rehabilitation 263 km in 2001/2002 (R 226 million) • Northern Province – Maintenance and construction (roads and bridges) R 266 million

  29. Proposed projects 2001/2002

  30. Conclusions • Need for availability of valid information – roads focus • Need similar reporting / calculation mechanisms (backlog, progress etc) • Information is “dynamic” until the Auditor General captures it • Need a team approach

  31. Road forward • PFMA effect on availability of budget and progress information • Service delivery measures • 2002/03 – measurable objectives, service delivery standards, targets – included in budget submissions – describe how public funds are used • Need for good management systems • Backlog calculations • Standard format for data at regular intervals

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