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Gauteng Department of Health

Presentation to the NCOP on Conditional Presentation to the NCOP on Conditional GrantsGrants

11 May11 May 2007 2007

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Overview

Budget Trends Pre-audited expenditure Capital and maintenance Monitoring 2007/08 Budget and MTEF

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Conditional Grants

National Tertiary Services Grant (NTSG) Health Professions Training and

Development Grant (HPTDG) Revitalisation Grant (Capital) Provincial Infrastructure Grant (Capital) HIV and AIDS Grant Forensic Pathology Services Grant (FPS)

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2003-2004 2004-2005 % change 2005-2006 % change 2006-2007 %change 2007-2008 %change

AdjustedAdj Bud 2004-

05from 03/04

Final Adjustment

budget from 04-05

Adjustment Budget

from 05-06Original budget

from 06-07

R'000 R'000 % R'000 % R'000 % R'000 %

NationalNational Tertiary Services Grant 1 679 760 1 727 736 2.86% 1 760 465 1.89% 1 866 094 6.00% 1 959 399 5.00%

Health Professions Training and Development Grant 539 330 560 778 3.98% 554 039 -1.20% 554 039 0.00% 581 741 5.00%HIV/AIDS 64 288 134 231 108.80% 185 048 37.86% 270 195 36.56% 399 604 58.14%

Forensic Pathology Services 16 944 82 020 352.97% 83 749Hospital Revitalisation (Capital) 87 939 155 126 76.40% 88 955 -88.43% 415 201 268.19% 503 284 53.66%

Infrastructure Grant (Capital) 47 160 66 458 40.92% 73 955 11.28% 81 549 10.27% 81 699 0.18%Total National 2 614 231 2 675 412 2.34% 2 709 057 3 269 098 3 609 476 14.27%

Conditional Grants

Budget Trends

The allocation for the NTSG and HPTDG has not kept up with CPIX or medical inflation.

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Conditional Grant

Adjustment Budget

Allocation2006/7

Amount Transferre

d2006/7

YTD Unaudited

expenditure 2006/7

% Spent2006/7

R’000 R’000 R’000 %

National Tertiary Services

R 1 866 094 R1 866 094 R 1 866 094 100 %

Health Professions Training & Development

R 554 039 R 554 039 R 554 039 100 %

HIV and AIDS R 270 195 R270 195 R 270 210 100 %

Revitalisation (Capital Projects)

R 415 219 R 415 219 R 350 797 84 %

Provincial Infrastructure (Capital Projects)

R 81 549 R 81 549 R 81 549 100 %

Forensic Pathology R 82 020 R 82 020 R 66 285 81 %

Pre-audited expenditure at year closure 06/07

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Conditional Grants Graph

0102030405060708090

100Re

vita

lisat

ion

Prov

incial Inf

rastru

ctur

e

NTSG

HPTG FPS

HIV/

AIDS

Budget

Expenditure

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2006/07 Expenditure All conditional grants have been spent in full except for

Forensic Pathology Services which has under spent by R8,8 million

Replacement of cold rooms and body cabinets at institutions. equipment not delivered

Vehicles ordered in 06/07 but not delivered by the end of 31 March 2007.

Salary costs for the 1st quarter were paid by SAPS, claim of R3m was received but lower than anticipated

70% of posts filled by August due to delay in recruitment processes.

Delay in the approval of facility projects by National Public Works, DAC gave standing delegations to enable procurement processes to take place without waiting for National.

Emergency repairs on mortuaries done to the value of R4,6m, department received a claim of R164k.

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2006/07 Expenditure Revitalisation – R63,8 million

During the 06/07 financial year it was reported that there will be an over expenditure on this grant

Projects were scaled down significantly to avoid over expenditure, in some projects Public works negotiated with contractors to stop work where possible without incurring penalties

Although additional funding was received in the 2006/07 Adjustments budget in January 07, it was difficult to bring on track those projects where contractors were stopped this resulted in the under expenditure specifically the revitalisation grant

Applied to Treasury for a roll over of funds.

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Capital and Maintenance Expenditure

Pre-Audited outcome for 2006/07

Adjustment BudgetR’000

ExpenditureR’000 % spent

Buildings 694 154 610 852 88.00%

Equipment 376 178 310 054 82.42%

Maintenance of facilities 288 878 298 011 103.16%

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The under-expenditure on buildings relates to the unspent revitalisation and forensic pathology grants

The under-expenditure on equipment is due to commitments incurred during 06/07 but deliveries and payment were not done before year closure as well as less equipment purchased than was budgeted for.

Capital and Maintenance Expenditure

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Monitoring

Financial Monitoring is done monthly by analysing

reports and verifying information Between Health and Works Within Health between Branches and Directorates Between Health and Treasury Between Gauteng Health and the National Department of

Health Compliance with reporting requirements

Monitoring has been strengthened in 2006/7. Executive Support Programme Manager dealing specifically

with capital expenditure was appointed Project managers have been appointed and they work closely

with the Department of Public Works to monitor projects Financial Manager within the ESPM branch has been appointed

to manage and monitor project spending

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2007/08 and MTEF Budget

2007/08 BUDGET AND MTEF ALLOCATIONS FOR CAPITAL INFRASTRUCTURE AND EQUIPMENT

Source 2007/08 2008/09 2009/10

  R'000 R'000 R'000

Hospital Revitalisation Conditional Grant

503,284

428,54

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716,267

Provincial Infrastructure Conditional Grant

81,699

86,981

91,329

Equitable Share capital projects

235,683

155,43

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146,852

Equipment

375,807 268,781 301,381

1,196,473 939,743 1,255,829

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2007/08 and MTEF Budget

2007/08 BUDGET AND MTEF ALLOCATIONS FOR OTHER CONDITIONAL GRANTS

Source 2007/08 2008/09 2009/10

  R'000 R'000 R'000

National Tertiary Services 1,959,399 2,161,529 2,290,054

Health Professions Training 581,741 610,828 614,812

Forensic Pathology Services 83,749 77,472 69,969

HIV and AIDS 399,604 479,502 602,885

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Challenges

Lack of adequate funding for all capital Infrastructure projects

Lack of due diligence in project implementation and management by project teams characterised by poor delivery, extensions and cost escalations of projects

Insufficient funding for medical equipment and declining budgets in real terms

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Certified Business Plans 07/08

Grant Business plans

National Tertiary Grant Yes

Health Professions Training and Development Grant

Yes

Revitalisation Grant (Capital) Yes

Provincial Infrastructure Grant (Capital)

Yes

HIV and AIDS Grant Yes

Forensic Pathology Services Grant Yes

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Thank you