1 presentation to the portfolio committee of mineral resources. stategic plan 2014/19 date: 8 july...
DESCRIPTION
Presentation Outline 1.The details on the budget that support the strategic plan of the department is outlined on pages 25 – 27 of the strategic plan: Budget Summary 2014/2015 Expenditure estimates per programme Expenditure estimates per economic classification 2.The Financial Administration Branch Strategic objectives and targets are outlined on pages of the strategic plans 3TRANSCRIPT
1
PRESENTATION TO THE PORTFOLIO COMMITTEE OF MINERAL RESOURCES.
STATEGIC PLAN 2014/19
DATE: 8 JULY 2014
Programme 1.1 - Financial Administration
Programme 1.1: Financial AdministrationPurpose
• Financial Administration is a sub-programme under
programme 1: Administration.
• The purpose of this programme is to enable the Department
of Mineral Resources to deliver on its mandate by providing
strategic management and administrative support to the
Ministry and the department.
2
Presentation Outline1. The details on the budget that support the strategic
plan of the department is outlined on pages 25 – 27 of the strategic plan:
Budget Summary 2014/2015 Expenditure estimates per programme Expenditure estimates per economic classification
2. The Financial Administration Branch Strategic objectives and targets are outlined on pages 42-48 of the strategic plans
3
Overall Department BudgetAUDITED OUTCOME
Final Appropriation
Medium-term allocation (MTEF 2014)
2009/10R’000
2010/11R’000
2011/12R’000
2012/13R’000
2013/14R’000
2014/15R’000
2015/16R’000
2016/17R’000
853 845 994 697 1 029 435 1 173 642 1 393 849 1 471 291 1 599 246 1 664
061
• Departmental expenditure increased from R853.845 million in 2009/10 to R1.174 billion in 2012/13.
• The budget for the 2013/14 financial year was R1.394 billion and is expected to increase by an average growth rate of 6.7% to R1.66 billion in 2016/17.
• The increase is attributed to increased funding for rehabilitation of derelict and ownerless mines and the specialised technical skills required for the implementation of the National Environmental Management Act.
Budget per programme
Programmes 2013/2014
MTEF 20142014/15 2015/16 2016/17
R’000 R’000 R’000 R’000
Administration 310,144 284,174
296,771
314,525
Promotion of Mine Safety and Health 153,998
167,970
177,729
188,934
Mineral Regulation 205,521
231,365
245,198
259,960 Mineral Policy and Promotion 724,186
787,782
879,548
900,642
Totals 1,393,849 1,471,291 1,599,246 1,664,061
Programmes 2013/2014
MTEF 20142014/15 2015/16 2016/17
R’000 R’000 R’000 R’000
Administration 310,144 284,174
296,771
314,525 Programme budget for 2013/14 was R310 million and is expected
to increase at an average growth of 1.5% to R314.5 million in 2016/17.
The spending focus over the MTEF:
•Staff development initiatives , including programmes to attract
skills in the mining inspectorate.
•ICT services and recruitment expenses
Programmes 2013/2014
MTEF 20142014/15 2015/16 2016/17
R’000 R’000 R’000 R’000
Promotion of Mine Safety and Health 153,998
167,970
177,729
188,934 The budget for the 2013/14 financial is expected to increase at an
average growth rate of 5.5 % to R188.9 million in 2016/17.
The spending focus over the MTEF:
To ensure compliance with the Mine health and Safety Act (1996) by conducting inspections, audits, inquiries and investigations.
To further enhance the capacity to conduct inspections.
Programmes 2013/2014
MTEF 20142014/15 2015/16 2016/17
R’000 R’000 R’000 R’000
Mineral Regulation 205,521
231,365
245,198
259,960 The Programme budget for the 2013/14 financial year was R154 million and is expected to increase at an average growth rate of 9.2 % to 260 million in 2016/17.
The spending focus over the MTEF:
Improving the process of issuing mining rights and permitsIncrease on compensation of employees and related goods and services for the implementation of National Environmental Management Act (1998).
Programmes 2013/2014
MTEF 20142014/15 2015/16 2016/17
R’000 R’000 R’000 R’000
Mineral Policy and Promotion 724,186
787,782
879,548
900,642 The Programme budget for 2013/14 was R724.2 million and is expected
to increase at an average growth of 8.3 % to R900.6 million in 2016/17.
The spending focus over the MTEF:
Promote the mineral sector and strengthening the regulatory framework that governs both the mining and petroleum sectors.
Assisting SMME’s to promote mineral development.
Budget per Economic Classification
Per Economic Classification
2013/2014
MTEF 20142014/15 2015/16 2016/17
R’000 R’000 R’000 R’000
Compensation of employees 435,288
476,757
505,651
539,022
Goods and services249,931
265,582
278,779
356,543
Transfer and subsidies
692,739
717,934 803,341
756,413
Capital assets15,881
11,018
11,475
12,083
Totals 1,393,849 1,471,291 1,599,246 1, 664,061
FINANCIAL ADMINISTRATIONBranch Strategic Objectives and Priorities
Strategic objective • To ensure system availability and processing of
request within the required time frames• Improve on financial management controls and
implement the ICT governance framework. • Manage budget and asset effectively and reduce
irregular expenditure• Reduce internal and external audit findings and
implement risk management strategies and promote compliance .
Stakeholder Perspective:Provide efficient services to internal and external customers
• System availability
• Service Level Agreement are achieved
• Stakeholder Customer satisfaction
• Regulatory financial reports delivered on schedule
• Suppliers invoices paid within 30 days
Internal processes:Implement Improved Processes and systems
• Improved Financial Management Maturity
• Implementation of Master Systems Plan which has
been developed to support the Strategic Objectives of
the department through ICT.
Financial Perspective :Manage Financial Resources
• Ensuring strategic alignment of the budget
• Avoiding irregular expenditure
• Reduction of assets disposed prior to the end of its
lifecycle due to theft, negligence.
Conclusion
• The department is committed to ensure effective, efficient and economic utilisation of resources.
• Over the past four years the Department spending remained within the budget through cost containment measures and as a result under spending was less than two per cent per year on average over the period.
• The oversight structures available will continuously monitor the implementation of the plans in line with the allocated budget.