CONDITIONAL GRANT EXPENDITURE

3RD QUARTER 2009-2010

Select Committee on AppropriationsParliament of the Republic of South Africa

19 May 2010

CONDITIONAL GRANT FORCOMMUNITY LIBRARIES

Introduction

• The 2009/2010 marks the third year of the Conditional Grant funding received by the department for community libraries.

• In implementing the grant, the department works in partnership with the local municipalities who serve as implementing agents for some of the identified and prioritised projects.

• The department signed transfer payment Memoranda of Agreement with the 28 municipalities of the Western Cape for implementation of projects that include:– Staffing of public libraries– Literacy projects– Maintenance / upgrading projects

• The department also signs Memorandum of Understanding with Municipalities with regard to implementation of the Rural Library Connectivity Project and (ICT) projects.

DATA ON TRENDS IN ALLOCATION, TRANSFERS AND ACTUAL EXPENDITURE

Received allocations

Transfers to municipalities

Other ExpenditureActual

expenditure

2007/08

R16 740 000R15 534 507 R1 113 493

R16 648 000

(99.5%)

2008/09

R31 434 000R24 853 265 R6 483 735

R31 337 000

(99.7%)

2009/10

R 41 073 000R31 452 000 R9 620 996

R41 072 996.30

(100%)

DATA ON TRENDS IN ALLOCATION, TRANSFERS AND ACTUAL EXPENDITURE

Allocation criteria applied for the three financial years.

• % of total population of a municipality in relation to the total population of the province (60% weight)

• % of total circulation of libraries in a municipality in relation to the total circulation in the province (30% weight)

• % of libraries in a municipality in relation to the number or libraries in the province (10% weight)

• In 2008/09 an increase of 8.5% was added to the staff allocation of 2007/08.

• In 2009/10, an increase of 10% was added to the staff allocation of 2008/09.

• In addition, requests for literacy, maintenance and upgrading projects were considered.

CONDITIONAL GRANTS FOR COMMUNTIY LIBRARIES: ALLOCATION

TRENDS IN ALLOCATION

• Total Provincial budget for 2009/10: R41 073 000

• Total transfers = 76.6% share of the provincial allocation

(R31 452 000) for additional staff, literacy, maintenance and upgrading projects.

• Centrally managed projects are the establishment of mobile book trolleys, purchasing of library material, Rural Library Connectivity Project and Grant management – (23.4% balance of the funding).

CONDITIONAL GRANTS FOR COMMUNITY LIBRARIES PROJECTS FOR 2009/10 (R41 073 000)

ALLOCATION PER PROJECT

• R27 642 300: 287 staff appointed with conditional grant funding in libraries

• R839 000: 40 maintenance projects undertaken in libraries

• R2 850 700: Upgrading projects in 8 libraries

• R120 000: 35 literacy projects implemented in libraries

• R855 000: 5 Additional sites established (R785 000 used on library material for new and existing sites)

• R1 515 000: 20 rural public libraries received ICT infrastructure, access to the internet and a library management system. Maintenance of 24 sites with installed infrastructure is continuous.

CONDITIONAL GRANTS FOR COMMUNITY LIBRARIES PROJECTS FOR 2009/10 (41 073 000)

ALLOCATION PER PROJECT

• R 4 800 000: 6 000 copies of updated reference books will be bought for all libraries, (R2 000 000 of the allocation is for youth reference material)

• R634 000: 18 000 copies of indigenous language (Afrikaans and isiXhosa) books for the youth will be bought for all libraries. The processes that lead to the delivery and payment of books are continuous throughout the financial year

• R10 000: 600 copies of literacy books to be bought for all libraries

• R1 807 000: 8 staff appointed to co-ordinate and manage Conditional Grant projects

BUSINESS PLAN CASH FLOW 09/10

Q1 Q2 Q3 Q4

TOTAL RECEIVED by

END OF 3RD QUARTER

PERCENTAGE of grant received by

end of 3rd Q

R1 896 096R12 789

177R11 453

059R14 934

668R26 138 332

63, 64% received by end

of Q3

TRENDS IN ALLOCATION 3RD QUARTER

BUDGET ALLOCATION

RECEIVED TRANSFERSOTHER

EXPENDITUREACTUAL

EXPENDTIURE

PERCENTAGE SPENT BY END

OF 3RD Q

R41 073 000 R26 138 332 R17 067 850 R4 118 265 R21 186 11581% of total

received spent by end of Q3

REASONS FOR UNDER EXPENDITURE in 3rd Quarter

• Delays in delivery of mobile book trolley (supplier)• Delays in delivery of library material (supplier)

• Cost of ICT equipment less than budgeted • Cost of mobile book trolleys less than budgeted

• Note: Cost savings spent on books during the fourth quarter

ASSESSMENT OF MONITORING CAPACITY OF 2009/10

• The department monitoring function through scheduled official visits.

• 1 478 monitoring visits were undertaken during this financial year.

• Individual municipalities costed business plans submitted with the signed Memoranda of Agreement (MOA’s).

• Monthly Finance Focus meetings to keep track on the conditional grant expenditure trends.

• BAS monthly expenditure report to confirm under/over expenditure against cash flow.

• PALS selection and payment modules printouts to monitor expenditure on library material.

COMPLIANCE WITH MONTHLY REPORTING

• Monthly expenditure reports are submitted on a standard template designed to provide required information for analysis.

• Standard follow up procedures are used e.g., telephone calls, e-mail.

• Formal letters are written to non-compliant municipalities when reports are not submitted.

• Monitoring visits to non-compliant municipalities as well as those who request assistance are undertaken.

Conclusion

• In 07/08 99.5% of the grant was spent

• In 08/09 99.7% of the grant was spent

• In 09/10 100% of the grant was spent