2007/08 Preliminary Expenditure Outcomes Urban Development and Infrastructure

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2007/08 Preliminary Expenditure Outcomes

Urban Development and Infrastructure

Joint Budget Committee

30 May 2008

Mahesh Fakir

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Scope

• Preliminary expenditure outcome summary per department • General spending trends

– Summary last quarter and March spending– Summary vacancy rates on critical posts– Summary virements

• Detail expenditure outcomes and major issues per department including details on major activities/projects, major current expenditure virements and major underspending /deviations– Department of Transport– Department of Housing– Department of Provincial and Local Government– Department Water Affairs and Forestry– Department of Minerals and Energy– Department of Communications

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Preliminary expenditure outcomes

Available Preliminary Deviation Actual

2007/08 Financial year Funds Expenditure (Available Spending

Outcome Funds less as % of

Spending) Available

R '000 Funds

Transport 16 543 932 16 327 644 216 288 98.7%

Housing 8 982 358 8 586 909 395 449 95.6%

Water Affairs and Forestry 5 862 513 5 385 513 477 177 91.9%

Provincial and Local Government 30 036 751 30 028 478 8 273 100%

Minerals and Energy 2 974 937 2 947 370 27 567 99.1%

Communications 1 924 483 1 911 778 12 705 99.3%

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Percentage Last Quarter and March Spending

4th Quarter Mar-07

Transport 29.7 10.1

Housing 28.1 10

Provincial and Local Government 38.7 4.5

Water Affairs and Forestry 32 14.9

Minerals and Energy 28.6 10.9

Communications 45.5 11.6

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Summary of vacancy rates

Department Number of Posts Filled Posts Vacant Posts Vacancy Rate (%)

Transport 883 539 344 39

Housing 419 318 101 24.1

Provincial and Local Government

524 440 84 16

Water Affairs and Forestry 15 752 12 631 3121

Professional = 208

19.8

Minerals and Energy 1395 1144 251 18

Communications 468 291 177 37.8

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Summary of virements

Department Virement before & in the Adjustment Estimates

R’000

Virement after Adjustment Estimates

R’000

Total Virements

R’000

% of Total Budget

Transport 13 300 72 048 85 348 0.5

Housing (per economic classification)

24921 19493 44414 0.5

DPLG 20 302 10 224 30 526 0.1

DWAF 5 000 80 115 85 115 1.45

Minerals and Energy

5 800 27 205 29 083 0.98

Communication 10 000 16 884 26884 1.4

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Preliminary expenditure outcomes

Available Preliminary Deviation Actual

2007/08 Financial year Funds Expenditure (Available Spending

Outcome Funds less as % of

Spending) Available

R '000 Funds

1. Administration 189 509 188 033 1 476 99.2%

2. Transport Policy, Research and Economic Analysis 29 014 17 585 11 429 60.6%

3. Transport Regulation and Accident and Incident Investigation

231 374 201 811 29 563 87.2%

4. Integrated Planning and Inter-sphere Co-ordination 5 314 708 5 226 209 88 499 98.3%

5. Freight Logistics and Corridor Development 26 381 12 981 13 400 49.2%

6. Public Transport 10 557 025 10 514 647 42 378 99.6%

7. Public Entity Oversight and Economic Regulation 195 921 166 378 29 543 84.9%

Total 16 543 932 16 327 644 216 288 98.7%Tra

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January February MarchTotal 4th Quarter

Total Expenditure

Q4 as % of Total Expenditure

PROGRAMME

1. Administration -27 747 17 568 24 056 13 877 187 934 7.4%

2. Transport Policy, Research and Economic Analysis 1 327 1 548 2 054 4 929 17 584 28.0%

3. Transport Regulation and Accident and Incident Investigation 11 259 7 231 66 411 84 901 201 811 42.1%

4. Integrated Planning and Inter-sphere Co-ordination 578 460 341 155 987 000 1 906 615 5 226 209 36.5%

5. Freight Logistics and Corridor Development 350 545 573 1 468 12 980 11.3%

6. Public Transport 1 030 822 1 166 849 531 427 2 729 098 10 514 646 26.0%

7. Public Entity Oversight and Economic Regulation 63 769 449 44 516 108 734 166 476 65.3%

TOTAL EXPENDITURE 1 658 240 1 535 345 1 656 037 4 849 622 16 327 640 29.7%

ECONOMIC CLASSIFICATION Current payments

Total current payments 36 241 53 382 99 968 189 591 583 357 32.5% Transfers and subsidies to:

Current transfers

Subtotal current transfers and subsidies 886 343 1 168 946 470 619 2 525 908 7 806 169 32.4% Capital transfers

Subtotal capital transfers and subsidies 735 490 312 757 1 085 106 2 133 353 7 934 841 26.9% Total Transfers and Subsidies 1 621 833 1 481 703 1 555 725 4 659 261 15 741 010 29.6% Payments for capital assets

Machinery and equipment 166 260 344 770 3 273 23.5% Total payments for capital assets 166 260 344 770 3 273 23.5%

TOTAL EXPENDITURE 1 658 240 1 535 345 1 656 037 4 849 622 16 327 640 29.7%

4th Quarter SpendingT

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Observations and analysis Spending Patterns

• Last quarter spending 29.7% of total expenditure, 53.3 % current transfers to households ( taxi recapitalisation)

• 76.2% of total goods and services budget spent in 2007/08 leaving R137 million unspent.

• 76.7 % of goods and services budget spent on consultants, contractors and special services of which 19.3% was spent in March 2008

• Vacancy rates on critical posts• Vacancy rate for senior management service is 44.8%, high

vacancy rates in Freight Logistics ( 60.7%) and Public Entity Oversight and Economic Regulation (68.4%) have contributed to under-spending in these programmes

• Virements• 9 requests for virements were receivedT

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Observations and analysis • Programmes contributing most to total under-spending is public

transport (40.1%) and inter-sphere coordination (19.6%), however spending in both above 98% of total allocation

• Freight Logistics programme failed to spend 50% of the budget, clarification of role of provincial and local government in the provision of logistics infrastructure and services necessary

• Policy research and economic analysis spent only 60.6% of budget in 2007/08. Programme plagued by delays in bidding process

• Public Entity Oversight failed to spend R14 million made available in 2006 for the restructuring of the RAF, Ports Regulator has not been set up to allow funds to flow to the regulator

• Under-spending on capital assets due to lack of clarity on infrastructure priorities as proposed in the Roads Infrastructure Strategic Framework for South Africa approved by Cabinet in 2006:– R30 million on Sani Pass– R8 million on overload control– R30 million on rural transport strategy

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Expenditure SummaryInitial

AllocationTotal

Adjustments

Total Available

FundsTotal

Expenditure Deviation

Expenditure as % of Allocation

PROGRAMME

1. Administration 116 419 6 000 122 419 114 688 7 731 93.7%2. Housing Policy Research and Planning 89 979 (12 000) 77 979 72 745 5 234 93.3%3. Housing Implementation Support 147 926 (4 000) 143 926 140 410 3 516 97.6%4. Housing Development Finance 8 523 284 114 750 8 638 034 8 259 066 378 968 95.6%

TOTAL EXPENDITURE 8 877 608 104 750 8 982 358 8 586 909 395 449 95.6%

ECONOMIC CLASSIFICATION

Current paymentsCompensation of employees 107 973 (10 445) 97 528 97 239 289 99.7%Goods and services 285 623 (13 801) 271 822 256 346 15 476 94.3%Total current payments 393 596 (24 246) 369 350 353 585 15 765 95.7%

Transfers and subsidies to:Current transfersDepartmental agencies and accounts 239 416 17 750 257 166 77 165 180 001 30.0%Foreign governments & international organisations 79 921 1 000 606 394 60.6%Households - 875 875 700 175 80.0%Subtotal current transfers and subsidies 239 495 19 546 259 041 78 471 180 570 30.3%Capital transfersProvinces and municipalities 8 237 946 105 000 8 342 946 8 149 869 193 077 97.7%Subtotal capital transfers and subsidies 8 237 946 105 000 8 342 946 8 149 869 193 077 97.7%Total Transfers and Subsidies 8 477 441 124 546 8 601 987 8 228 340 373 647 95.7%

Payments for capital assetsMachinery and equipment 6 458 4 405 10 863 4 910 5 953 45.2%Software and other intangible assets 113 45 158 74 84 46.8%Total payments for capital assets 6 571 4 450 11 021 4 984 6 037 45.2%

TOTAL EXPENDITURE 8 877 608 104 750 8 982 358 8 586 909 395 449 95.6%Ho

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Last Quarter Expenditure

January February March Total 4th Quarter

Total Expenditure

Q4 as % of Total

ExpenditurePROGRAMME

1. Administration 4 413 10 899 4 808 20 120 114 688 17.5%2. Housing Policy Research and Planning 3 780 6 726 30 775 41 281 72 745 56.7%3. Housing Implementation Support 4 662 5 213 33 555 43 430 140 410 30.9%4. Housing Development Finance 585 705 926 674 792 332 2 304 711 8 259 066 27.9%

TOTAL EXPENDITURE 598 560 949 512 861 470 2 409 542 8 586 909 28.1%

ECONOMIC CLASSIFICATION

Current paymentsCompensation of employees 7 693 7 778 7 997 23 468 97 239 24.1%Goods and services 11 526 16 911 56 833 85 270 256 346 33.3%Total current payments 19 219 24 689 64 830 108 738 353 585 57.4%

Transfers and subsidies to:Current transfersDepartmental agencies and accounts 0 235 7 030 7 265 77 165 9.4%Foreign governments & international organisations 386 221 607 606 100.2%Households 144 41 62 247 700 35.3%Subtotal current transfers and subsidies 144 662 7 313 8 119 78 471 10.3%Capital transfersProvinces and municipalities 578 727 923 448 787 960 2 290 135 8 149 869 28.1%Subtotal capital transfers and subsidies 578 727 923 448 787 960 2 290 135 8 149 869 28.1%Total Transfers and Subsidies 578 871 924 110 795 273 2 298 254 8 228 340 27.9%

Payments for capital assetsMachinery and equipment 426 713 1 383 2 522 4 910 51.4%Software and other intangible assets 44 0 -16 28 74 37.8%Total payments for capital assets 470 713 1 367 2 550 4 984 51.2%

TOTAL EXPENDITURE 598 560 949 512 861 470 2 409 542 8 586 909 28.1%Ho

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Observations and analysis• Expenditure in 2007/08 at 95.6% compared to 97.7% in 2006/07 and 99.5%

in 2005/06• Programme 2: Housing Policy Research and Planning traditionally lowest

spending performance with 56.7% of total spending in programme spent in Q4• Goods and services – March spike 22% in one month• Under-expenditure (departmental + provincial (on grant))

– R193 million on Integrated Housing and Human Settlement Development Grant (funds withheld by the Housing dept. in terms of S26 of DoRA)

– R180 million to the Social Housing Regulatory Authority (entity not established as Social Housing Bill, 2006 not promulgated)

– R445 million on Integrated Housing and Human Settlement Grant transferred to provinces but not spent

• Western Cape: N2 Gateway – R73 million• North West: Various projects – R89 million• Free State: Various projects – R79 million• Eastern Cape: Various Projects incl. Zanemvula – R161 million

• Virements- 8 requests for virements• Vacancies – 24% overall, SMS: 6%

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Expenditure Summary

DPLGAvailable funds

(R’000)Total Expenditure

(R’000) Deviation

Prelim. Expenditure

Outcome

1. Administration 142 900 142 451 449 99.7%

2. Governance, Policy and Research 39 839 38 780 1 059 97.3%

3. Urban and Renewal Development 9 827 8 626 1 201 87.8%

4. Systems and Capacity Building 92 450 89 605 2 845 96.9%

5. Free Basic Services and Infrastructure 37 170 34 542 2 628 92.9%

6. Provincial and Local Government Transfers 29 629 760 29 626 760 - 100.0%

7. Fiscal Transfers 84 805 84 805 91 99.9%

Total 30 036 751 30 036 478 8 273 100.0%

Current expenditure 336 179 328 491 7 688 97.7%

Of which:

Compensation of employees 132 366 128 146 4 220 96.8%

Goods and Services 203 413 199 954 3 459 98.3%

Transfers and subsidies 29 692 145 29 692 146 (1) 100.0%

Of which:

Provincial and Local Government transfers 29 629 762 29 629 760 2 100.1%

South African Local Government Association 20 461 20 461 - 100.0%

Municipal Demarcation Board 20 664 20 664 - 100.0%

Commission for the Promotion and Protection of the Rights of Cultural, Religious and Linguistic Communities 15 447 15 447 - 100.0%

National House of Traditional Leaders 9 598 10 573 (975) 110.0%

Payments for capital assets 8 427 7 841 586 93.0%

Total 30 036 751 30 028 478 8 273 100%DP

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Last Quarter Spending Trends

Jan 08 Feb 08 March 08 Total Exp Allocation Expenditure

Programme 3 months

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

Prog 1: Administration 7 664 18 402 18 566 44 632 142 900 31.2

Prog 2: Governance,Policyand Research 2 203 3 456 9 656 15 315 39 839 38.4

Prog 3: Urban and Rural Development 646 1 057 951 2 654 9 827 27.0

Prog 4: Systems and Capacity Building 4 610 11 306 9 912 25 828 92 450 27.9

Prog 5: Free Basic Services and Infrastructure 886 2 732 8 220 11 838 37 170 31.8

Prog 6: Provincial and Local Government Transfers 721 693 9 472 850 1 294 717 11 489 260 29 629 760 38.8

Prog 7: Fiscal Transfers 16 312 12 011 3 409 31 732 84 805 37.4

Total 754 014 9 521 814 1 345 431 11 621 259 30 036 751 38.7

Economic Classification

Current Payments 17 293 38 639 43 727 99 659 339 043 29.4

Compensation of Employees 9 791 11 039 11 046 31 876 132 366 24.1

Goods and Services 7 502 27 548 32 517 67 567 203 413 33.2

Financial Transactions in assets & liabilities 0 52 164 216 400 54.0

Transfer and subsidies to Current Transfers } 14 743 8 624 750 2 108 8 641 601 20 938 281 41.3

Transfers and subsidies to Capital Transfers} 721 694 858 009 1 294 716 2 874 419 8 754 140 32.8

Payments for capital assets 284 415 4 898 5 597 5 287 105.9

Total 754 014 9 521 813 1 345 449 11 621 276 30 036 751 38.7


Current Payments 17 293 38 639 43 727 99 659 339 043 29.4

Transfers and Subsidies (Current & Capital) 736 437 9 482 759 1 296 824 11 516 020 29 692 421 38.8

Payments for capital assets 284 415 4 898 5 597 5 287 105.9

Total 754 014 9 521 813 1 345 449 11 621 276 30 036 751 38.7DP

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Observations and AnalysisMajor Over/under spending and deviations 2007/08 spending pattern of 99.97% is higher when compared with the spending

pattern for the previous two financial years (99.98% for 2005/06 and 96.8% for 2006/07). Under-spending for 2007/08 amounted R8.273 million

Out of the total allocation of R30.036 billion, R29.629 billion relates to transfers made by the Department to provinces and municipalities for equitable share and MIG

Last Quarter Expenditure The Department made unusually high transfers for equitable share (‘transfers and

subsidies to current transfers’) and MIG (‘transfers and subsidies to capital transfers’) during the last quarter resulting in 38.8% expenditure during this period alone

As at the end of March 2008 (3rd quarter for municipalities) an estimated 80% of MIG funds transferred by the dept had been spent by municipalities

Virements 4 Virements were processed during 2007/08Vacancy Rate At the end of 2007/08 the department had a vacancy rate of 16% (84 posts) Of this 16% overall vacancy rate, 40% (39 posts) comprises the “professionally

qualified” and “senior management categories”

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Expenditure Summary

DWAFAvailable funds

(R'000)Total Expenditure

(R'000) Deviation

1. Administration 603 014 604 879 (1 865) 100.3%

2. Water Resources Management 2 915 512 2 462 514 452 998 84.5%

3. Water Services 1 874 007 1 866 926 7 081 99.6%

4. Forestry 469 980 451 077 18 903 96.0

Total 5 862 513 5 385 396 477 117 91.9%

Economic Classification:

Current expenditure 2 900 770 2 925 592 (24 822) 100.9%

Of which:

Compensation of employees 1 1192 156 1 151 660 40 496 96.6%

Goods and Services 1 703 576 1 670 044 33 532 98.0%

Transfers and subsidies 2 480 094 2 054 039 426 055 82.8%

Of which:

Water Services Operating Subsidy Grant 622 038 642 025 (19 987) 103.2%

Augmentation of Water Trading Account from main account 1 625 908 1 190 161 435 747 73.2%

Other 232 148 221 853 11 782 2.26%

Payments for capital assets 481 649 405 765 75 884 84.2%

Total 5 862 513 5 385 396 477 117 91.9%

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Last Quarter Spending Trends

Jan 08 Feb 08 March 08 Total Exp Allocation Expenditure

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

Prog 1: Administration 42 360 54 472 80 567 177 399 603 014 29.4

Prog 2: Water Resources Management 88 361 349 950 376 925 815 236 2 915 512 28.0

Prog 3: Water Services 224 062 163 850 364 337 752 249 1 874 007 40.1

Prog 4: Forestry 34 708 46 080 48 476 129 264 469 980 27.5

Total 389 491 614 352 870 305 1 874 148 5 862 513 32.0


Current Payments 195 153 241 760 480 950 917 863 2 900 770 31.6

Compensation of Employees 88 798 85 666 107 487 281 951 1 192 156 23.7

Goods and Services 106 207 155 985 372 747 634 939 1 703 576 37.3

Financial Transactions in assets & liabilities 17 -160 310 167 1 340 12.5

Other 131 269 406 806 3 698 21.8

Transfer and subsidies to Current Transfers } 163 436 86 898 6 703 257 073 1 042 045 24.6

Transfers and subsidies to Capital Transfers} 2 500 226 000 97 704 326 204 1 438 049 22.7

Payments for capital assets 28 402 59 694 284 948 373 044 481 649 77.5

Total 389 491 614 352 870 305 1 874 148 5 862 513 32.0


Current Payments 195 153 241 760 480 950 917 863 2 900 770 31.6

Transfers and Subsidies (Current & Capital) 165 936 312 898 104 047 582 881 2 480 094 23.5

Payments for capital assets 28 402 59 694 284 948 373 044 481 649 77.5

Total 389 491 614 352 869 945 1 873 788 5 862 513 32.0DW

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Observations and AnalysisMajor Over/under spending and deviations 2007/08 spending pattern of 91.9% is lower when compared with the spending pattern

for the previous two financial years (94.6% for 2005/06 and 92.4 % for 2006/07), primarily due to the delays experienced with the construction of the De Hoop dam

Last Quarter Spending Expenditure clearly increased progressively month-on-month during the last quarter The largest area of expenditure related to the ‘schools and clinics’ grant and the ‘bulk

infrastructure’ grantVirements 7 Virements were processed during 2007/08Vacancy rates At the end of 2007/08 the department had a vacancy rate of 19.8% (3 121 posts) Of this 35% (899 posts) comprises the “highly skilled supervision” and “senior

management categories”– Out of a total of 49 posts for the category engineers and related professionals

there are 23 vacant posts– Out of a total of 273 posts for the category civil engineering technicians there are

132 vacant posts– Out of a total of 110 posts for the category geologists, geophysicists, hydrologists

there are 53 vacant posts

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Expenditure SummaryD

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2007/08 Financial year Funds Expenditure (Available SpendingOutcome Funds less as % of

Spending) AvailableR '000 FundsProgrammes:

1. Administration 185 867 191 396 (5 529) 103.0%2. Promotion of Mine Safety and Health 112 505 104 283 8 222 92.7%3. Mineral Regulation 144 534 137 800 6 734 95.3%4. Mineral Policy and Promotion 73 613 73 554 59 99.9%5. Hydrocarbons and Energy Planning 55 035 52 453 2 582 95.3%6. Electricity and Nuclear 69 924 69 841 83 99.9%7. Associated Services 2 333 459 2 318 043 15 416 99.3%

Total 2 974 937 2 947 370 27 567 99.1%Economic Classification:

Current expenditure 581 081 572 582 8 499 98.5%Of which:

Compensation of employees 296 048 290 560 5 488 98.1%Goods and Services 285 033 276 420 8 613 97.0%

Transfers and subsidies 2 384 672 2 366 519 18 153 99.2%

Payments for capital assets 9 184 8 269 915 90.0%

Total 2 974 937 2 947 370 27 567 99.1%

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Last quarter spendingD

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Jan 08 Feb 08 March 08

Total Expenditure in 3 Months Allocation

Expenditure in 3 months as a % of total allocation

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

1: Administration 20 926 18 768 9 139 48 833 185 867 26.3%2: Promotion of Mine Health and Safety 7 558 9 322 8 637 25 517 112 505 22.7%

3: Mineral Regulation 7 356 23 023 15 557 45 936 144 534 31.8%

4: Mineral Policy and Promotion 2 827 26 050 5 893 34 770 73 613 47.2%

5: Hydrocarbons and Energy Planning 5 216 8 029 5 623 18 868 55 035 34.3%

6: Electricity and Nuclear 24 833 2 693 5 915 33 441 69 924 47.8%

7. Associated Services 167 364 203 615 267 591 638 570 2 333 459 27.4%

Theft and Losses 1 15 5 578 5 594

Total 236 081 291 515 323 933 851 529 2 974 937 28.6%


Current Payments 69 585 63 004 52 194 184 783 581 081 31.8%Compensation of Employees 23 811 23 547 24 798 72 156 296 043 24.4%

Goods and Services 45 774 39 442 21 809 107 025 285 033 37.5%

Financial Transactions in Assets and Liabilities 15 5 587 5 602

Transfers and Subsidies 166 142 228 361 270 835 665 338 2 384 672 27.9%

Current Transfers and Subsidies 25 503 50 622 46 131 122 256 958 301 12.8%

Capital Transfers and Subsidies 140 639 177 739 224 704 543 082 646 000 84.1%

Payments for Capital Assets 354 150 904 1 408 9 184 15.3%

Total 236 081 291 515 323 933 851 529 2 974 937 28.6%

Economic Classification Current Payments 69 585 63 004 52 194 184 783 581 081 31.8%



Total 236 081 291 515 323 933 851 529 2 974 937 28.6%

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Observations and Analysis• Preliminary Expenditure Outcome– The department spent R2.95 billion or 99.1 of its allocated budget– All programmes’ spending exceeded 92 per cent of their respective allocated funds, whilst

programme 1 over spent– Savings arose from non-spending on compensation of employees and goods and services• General Spending Trends– 78 per cent of the department’s budget is transfers and subsidies to entities including

Eskom, Necsa, Council for Geosciences, Mintek, NNR, SADPR etc– Between 2005/06 and 2007/08, there has been an overall increase in departmental

budget/expenditure at an average annual growth rate of 16.0 per cent from R2 billion to R3 billion.

– Spending rate of 99.1 per cent is the highest over the past 3 financial years.– A spike in spending over the last quarter of the FY was in Programme 6, where spending

rose by 89.2% from R2,69m in January to R24,83m in February – leading to an overall quarterly spend of 47.8% of the total allocation.Major Activities/ Projects

– Integrated National Electrification Programme– Appointment of the Petroleum Controller- establishment of a dedicated Petroleum licensing

function Overall under spending

– Department under spent by R27.567 million, which is 0.9 per cent of the total allocated budget of R2.97 billion.Vacancy Rate - 17.9% - Major vacancies exist in the Deputy Director and Junior Management categories – i.e. 26.7% and 19.5%, unfilled posts, respectively.

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Expenditure SummaryR’000 Available funds Total Expenditure Deviation Expenditure as a % of

allocation

1.Administration 98 359 97 569 790 99.2

2. Strategic Policy Co-ordination, Integration and International Affairs

43 669 43 145 524 98.8

3. Policy Unit 64 081 54 875 9204 85.6

4. Finance and Shareholder Management

1 621 593 1 619 804 1789 99.9

5. Innovative Applications and Research

69 111 69 094 17 100

6.Presidential National Commission 27 670 27291 379 98.6

Total 1 924 483 1 911 778 12 705 99.3 %


Current Expenditure

Of which:

Compensation of EmployeesGoods and Services

317 709

103 614 214 030

310 964

97 707213 912

6745

5 907838

97.9

94.399.6

Transfers and Subsidies

Of which:

Sentech SABCSAPOICASA

500 000239 118363 800232 475

500 000239 118363 800226 758

0005 717

10010010097.5

Payments for capital assets 8 472 8 470 2 100 %

Total 1 924 483 1 911 778 12 705 99.3

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Last quarter spending

Jan 08 Feb 08 March 08

Total Expenditure in 3 Months Allocation

Expenditure in 3 months as a % of total allocation

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

1: Administration 5 474 7 603 16 583 29 660 98 359 30.2%

2: Strategic Policy Co-ordination, Integration and International Affairs 5 196 3 037 3 968 12 201 43 669 27.9%

3: Policy Unit 6 913 1 536 31 137 39 586 64 081 61.8%

4: Finance and Shareholder Management 31 795 578 622 156 870 767 287 1 621 593 47.3%

5: Innovative Applications and Research 3 519 5 867 9 879 19 265 69 111 27.9%

6: Presidential National Commission 1 345 2 046 4 001 7 392 27 670 26.7%

Theft and Losses 8 13 22 64 34.4%

Total 54 242 598 719 222 451 875 412 1 924 547 45.5%


Current Payments 19 968 24 669 54 133 98 770 312 639 31.6%Compensation of Employees 8 109 8 035 7 870 24 014 103 614 23.2%

Goods and Services 11 859 16 626 46 250 74 735 214 030 34.9%

Financial Transactions in Assets and Liabilities 8 13 21 65 32.3%


Current Transfers and Subsidies 34 274 73 844 166 659 274 777 958 301 28.7%

Capital Transfers and Subsidies 500 000 500 000 646 000 77.4%


Total 54 242 598 719 222 451 875 412 1 924 483 45.5%

Economic Classification Current Payments 19 968 24 669 54 133 98 770 312 639 31.6%



Total 54 242 598 719 222 451 875 412 1 924 483 45.5%

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Vacancy rates C

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Management Level Post Count Head Count

Minister 1 1

Deputy Minister 1 1

Director General 1 1

Deputy Director General 8 5

Chief Director 25 20

Director 62 37

Deputy Director 83 53

Assistant Director 100 63

Junior Management 138 63

Low Level Supervision 49 47

Grand Total 468 291

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Observations and analysis • Preliminary Expenditure Outcome– Department spent R1.91 billion or 99.3 of its allocated budget– 5 out of 6 programmes’ spending exceeded 98 per cent of their respective allocated

funds– Savings are mainly due to non-spending on compensation of employees and transfer

payment not made to SABC Production Programme.General Spending Trends– 84 per cent of the department’s budget is transfers and subsidies to entities comprising

Sentech, SABC, SAPO, ICASA, Nemisa, USAASA and USAF– Between 2005/06 and 2007/08, there has been an overall increase in departmental

budget/expenditure at an average annual growth rate of 35.9 per cent from R1 billion to R1.9 billion.

– Department has spent over 99 per cent of its funds in the past 3 financial years.– A spike in spending occurred in Programme 3, where spending rose by 95.05% in

March from R1.54m in February 2008 to R31.14m in March, leading to an overall 61.8% spending on the programme. Programme 4 transferred R578.6m in February as compared to a January spend of R31.8m, this is equivalent to a February spend increasing by 94.5% due to special adjustment for Sentech

Major Activities/ Projects– Digital Terrestrial Television migration - switch on 01/11/2008– The ECA promulgation in 2006, led to ICASA engaging in the License Conversion

Project to comply with section 93 of the Act.Overall under spending– Department under spent by R12.705 million, which is 0.66 per cent of the total

allocated budget of R1.92 billion.Vacancy rate – 37.7% - Major vacancies exist in the Director and Junior management

categories – viz. 40.32% and 54.35% unfilled posts.

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Documents

2007/08 Preliminary Expenditure Outcomes Urban Development and Infrastructure