FREE STATE DEPARTMENT OF SPORT, ARTS, CULTURE AND

RECREATION

Presentation to Select Committee on Conditional Grants and Capital

Expenditureon

Under-Spending on the Community Library Services Grant

19 May 2010

04/19/23 2

CONTENT

• Community Library Services Grant: Business Plan • Community Library Services Grant: Expenditure Plan• Expenditure Trends up to 31 December 2009• General Analysis of Trends• Plan to Address Shortcomings• Expenditure shifting plan for under-spending• Up to date Expenditure at close of Financial Year• Assessment of Department’s Monitoring Capacity

04/19/23 3

BUSINESS PLAN: SUMMARY

Project Target Date Budget

R’000Provide ICT infrastructure to 59 libraries and maintain existing infrastructure

Quarter 3 10 115

Provide photocopiers to 30 libraries and maintain existing equipment

Quarter 2 1 529

Provide furniture to 23 libraries

Quarter 3 460

Provide A-V Equipment to 10 libraries

Quarter 3 220

04/19/23 4

BUSINESS PLAN: SUMMARY

Project Target Date Budget

R’000Upgrade security at 35 libraries

Quarters 3 and 4 3 672

Upgrade 10 libraries Quarter 4 2 000

Upgrade library collections with 50 000 publications and subscriptions to periodicals and electronic publications

Quarters 1-4 5 600

Provide services to visually impaired at 15 libraries

Quarter 3 375

04/19/23 5

BUSINESS PLAN: SUMMARY

Project Target Date Budget

R’000Improve staff capacity with 63 appointments, training programmes and bursary scheme

Quarter 2 15 082

Transfers to municipalities

Quarter 3 552

Promote a culture of reading

Quarter 3 300

Administration of grant Quarters 1- 4 410

TOTAL ALLOCATION 40 315

04/19/23 6

EXPENDITURE PLAN & ACTUAL EXPENDITURE

Allocation Quarter 1 Quarter 2 Quarter 3 Quarter 4 Total

Amount 5 335 9 245 15 016 10 719 40 315

% of total allocation

13.23% 22.93% 37.25% 26.59%

Actual expenditure

3 769 7 327 9 571 20 667

% of planned expenditure

70.65% 79.25% 63.74% 51.26%

Deviation 1 566 1 918 5 445 8 929

04/19/23 7

ANALYSIS OF LIBRARY SERVICES CONDITIONAL GRANT SPENDING UP TO QUARTER 3

Projects Total Budget Quarter 1 Quarter 2 Quarter 3 Total ExpenditureTo Quarter 3

% of Total Budget

ICT Infrastructure 10 155 445 3 065 2 199 5 709 56 %

Photocopiers 1 529 - 805 83 888 58 %

Furniture 460 8 19 401 428 93 %

A-V Equipment 220 - - 168 168 76 %

Security upgraded 3 672 - 51 1 783 1834 50 %

Buildings upgraded 2 000 393 308 375 1076 54 %

Library collections upgraded

5 600 706 661 1 493 2 858 51 %

Services to visually impaired

375 - - - - 0 %

Improved staff capacity 15 082 2 189 2 330 2 903 7 422 49 %

Transfers to municipalities 552 - - - - -

Promotion of a culture of reading

200 - 27 42 69 35 %

Grant Administration 410 28 61 124 213 52 %

-

TOTAL 40 315 3 769 7327 9 571 20 667 51 %

04/19/23 8

NOTES ON EXPENDITURE TRENDS

• ICT Infrastructure- Equipment and networks installed at 45 of 59

targeted libraries.- Delays with delivery of equipment and

installation of networks: Contractor could not deliver and SITA had to appoint a new contractor.

- Deviation from targeted expenditure due to late installation of networks and delays by SITA in invoicing for data lines.

04/19/23 9

NOTES ON EXPENDITURE TRENDS

• Furniture and Equipment

- Photocopiers installed as planned. Deviation in expenditure due to over-budgeting for maintenance and late invoicing.

- A-V equipment installed as planned at 10 libraries.

- Furniture delivered

04/19/23 10

NOTES ON EXPENDITURE TRENDS

• Security upgraded- Electronic security systems installed as planned at 5

libraries.- Installation of burglar alarms and appointment of

security services not achieved due to non-responsive bid documents and Provincial Treasury’s policy directives on arrangement of security contracts.

- One of 4 security fences done. Public Works Dept. experienced challenges in appointing contractors

04/19/23 11

NOTES ON EXPENDITURE TRENDS

• Buildings upgraded

- Progress on one project only: Philippolis.

- Deviation due to challenges experienced with the appointment of contractors.

• Transfer payments

- Not done: municipalities to submit required documentation.

04/19/23 12

NOTES ON EXPENDITURE TRENDS

• Improved staff capacity– Target: 63 additional staff appointed not achieved.– Recruitment delayed due to late approval to continue.

– Library collections– Target: 50 000 items of library material bought.– 36 651 items delivered and subscription to electronic

publications done.– Renewal of periodical subscriptions postponed till January.

Contractor experienced challenges with invoicing.– Deviation caused mostly by slow delivery by SMMEs who

experienced difficulties in obtaining seed money.

04/19/23 13

NOTES ON EXPENDITURE TRENDS

• Services to visually impaired

- SLA with Library for the Blind to be finalized.• Number of Libraries served by Conditional Grant

– Library collections upgraded: 20 libraries– ICT Infrastructure: 59 libraries– Photocopiers: 30 libraries– Additional staff: 50 libraries– Infrastructure: Renovations, security: 10 libraries

04/19/23 14

GENERAL ANALYSIS OF TRENDS

Under-expenditure caused mostly by:• Delay in recruitment and appointment of

staff.• Challenges experienced with appointment of

contractors for infrastructure projects.• New Provincial Treasury directives on the

arrangement of new contracts.• Late or non-delivery of orders for library

materials.

04/19/23 15

PLANS TO ADDRESS SHORTCOMINGS

• Obtain approval to amend business plan to redirect under-expenditure to other projects where contracts are in place and delivery can be fast-tracked.

• Obtain approval from Provincial Treasury to deviate from directives on arrangement of new contracts, especially security contracts.

• For 2010/11 appoint an infrastructure manager to assist Public Works Dept. with infrastructure contracts and improve monitoring of infrastructure projects.

04/19/23 16

PLANS TO ADDRESS SHORTCOMINGS

• Enter into an SLA with the Dept of Public Works and Rural Development to have a framework for service delivery.

• Expand the database of suppliers of library materials to have alternative suppliers in case of non-delivery.

• Strengthen the management capacity in the Library Services Directorate by filling 2 vacant posts of deputy director.

04/19/23 17

EXPENDITURE SHIFTING PLAN FOR UNDER-EXPENDITURE

Project AmountR’000

Upgrade library collections 4 447

Provide photocopiers to 14 libraries 266

Provide electronic security gates to 6 libraries

1 375

Computer equipment and consumables

1 041

Computer equipment and software for visually disabled

150

Additional training programmes 250

Philippolis Upgrade 1 400

Total 8 929

04/19/23 18

UP-TO-DATE EXPENDITURE AT CLOSE OF FINANCIAL YEAR

Allocation Quarter 1 Quarter 2 Quarter 3 Quarter 4 Total

Amount 5 335 9 245 15 016 10 719 40 315

Actual expenditure

(detailed breakdown available on)

3 769 7 327 9 571 19 524 40 191

Deviation 1 566 1 918 5 445 (8 805) 124

Note: Under-expenditure (R68 000) on compensation budget and R54 000 on library materials (roll-over requested)

Actual expenditure as % of total budget

9.35% 18.17% 23.74% 48.43% 99.69%

04/19/23 19

ASSESSMENT OF DEPARTMENT’S MONITORING CAPACITY

• Financial Control Committee meeting under chairpersonship of Head of Department.

• Chief Director: Cultural Affairs and Library Services and Director: Library and Archive Services.

• Expenditure trend-tracking overview by Chief Financial Officer.

• Finance, Supply Chain Management and Human Resources clerks appointed from grants to focus on grant commitments.

04/19/23 20

ASSESSMENT OF DEPARTMENT’S MONITORING CAPACITY

• Reporting system:

– Quarterly reports to National Department (and National Treasury via Provincial Treasury) with comments on variances.

– Monthly IYM reports, with comments on variances.

– Monthly progress and evaluation reports by Budget Managers.