IYM presentation

							Submitted to Committee on 1 March 2012, 16h39




IYM PRESENTATION
UP TO 31 DECEMBER
2011




By Finance:(Management
Accounting)
    1. SUMMARY OF NATIONAL STATE OF EXPENDITURE FOR THE
               YEAR TO DATE: 31 DECEMBER 2011

                                                    R'000

Budget allocation                               16,686,925
Less: Expenditure                               11,449,291


Total amount available                           5,237,634

Percentage spent                                   68.61%
2. SUMMARY OF STATE OF EXPENDITURE PER
   PROGRAMME FOR THE YEAR TO DATE: 31
            DECEMBER 2011


                                                                                  %
                                        Actual exp to            Spending Plan          Budget avail
     Programme           Budget R'000                   % Actual               Spending
                                         date R'000              to date R'000            R'000
                                                                                 plan
 Administration             4,625,868      3,162,079     68.36%       3,400,148 73.50%     1,463,789
 Security                   5,512,914      3,980,589     72.20%       4,136,275 75.03%     1,532,325
 Corrections                1,553,937      1,176,900     75.74%       1,153,594 74.24%       377,037
 Care                       1,853,141      1,223,260     66.01%       1,395,806 75.32%       629,881
 Development                  575,493        373,003     64.81%         422,966 73.50%       202,490
 Social reintergration        584,320        418,028     71.54%         431,557 73.86%       166,292
 Facilities                 1,981,252      1,115,432     56.30%       1,491,409 75.28%       865,820
 Total                     16,686,925     11,449,291     68.61%      12,431,755 74.50%     5,237,634
3. STATE OF EXPENDITURE PER PROGRAMME FOR THE YEAR TO
                 DATE: 31 DECEMBER 2011
         4. SUMMARY OF STATE OF EXPENDITURE PER
        ECONOMIC CLASSIFICATION FOR THE YEAR TO
                 DATE: 31 DECEMBER 2011
                                                                 Spending       %
                                         Actual exp to                                Budg avail
     GFS Classification     Budget R'000               % Actual plan to date Spending
                                          date R'000                                    R'000
                                                                   R'000       plan
Compensation of Employees     10,906,409    7,707,097    70.67%   8,420,941    77.21%   3,199,312
Goods & Services               4,498,962    3,158,780    70.21%   3,081,916    68.50%   1,340,182
Thefts and losses                      0            0     0.00%           0     0.00%           0
Interst & Rent on land                 0            0     0.00%           0     0.00%           0
Transfers & Subsidies             71,985       42,969    59.69%      34,440    47.84%      29,016
Payment of Capital Assets      1,209,569     540,445     44.68%    894,458     73.95%    669,124
Total                          16,686,925   11,449,291   68.61%   12,431,755   74.50%   5,237,634
5. STATE OF EXPENDITURE PER ECONOMIC CLASSIFICATION FOR THE
               YEAR TO DATE: 31 DECEMBER 2011
6. COMMENTS ON THE NATIONAL STATE OF EXPENDITURE FOR THE
      YEAR TO DATE PER PROGRAMME: 31 DECEMBER 2011
 •   The final overall year-to-date expenditure of the Department as at 31 December 2011 was
     R11.449 billion (68.61%) against the revised spending plan of R12.432 billion (74.50%) resulting
     in R983 million (5.85%) of the allocated budget [under-spending] against the spending plan.
 •   Factors that contributed to the under-spending per programme are as follows:


 •   Programme Administration: The actual spending of R3.162 billion (68.36%) against the budget
     spending plan of R3.400 billion (73.50%) (under-spending) is mainly on Compensation of
     Employees for the advertised posts that are in the process of being filled as well as 3% pay
     progression estimated from July which is in the process of being paid and on goods and services
     because of lower than anticipated spending on consultants and stores.


 •   Programme Security: The actual spending of R3.981 billion (72.20%) against the budget
     spending plan of R4.136 billion (75.03%) (under-spending) is mainly on Compensation of
     Employees for the advertised posts that are in the process of being filled as well as 3% pay
     progression estimated from July which is in the process of being paid and because of lower than
     anticipated spending on capital assets.


 •   Programme Corrections: The actual spending of R1.177 million (75.74%) against the budget
     spending plan of R1.154 million (74.24%) (over spending) is mainly due to the increase in
     number of posts filled and transfers more than what was originally anticipated in the spending
     plan
    6. COMMENTS ON THE NATIONAL STATE OF EXPENDITURE FOR
       THE YEAR TO DATE PER PROGRAMME: 31 DECEMBER 2011

•    Programme Care : The actual spending of R1.223 million (66.01%) against the budget spending plan
     of R1.396 billion (75.32%) (under-spending) is mainly on Compensation of Employees as a result of
     the advertised posts that the department is in the process of filling and 3% pay progression estimated
     from July which is in the process of being paid as well as Goods and Services due to the low
     movement of the stores items broadly as a result of the slow clearance of internal charges in line with
     the request and consumption of items.


•    Programme Development: The actual spending of R373 million (64.81%) against the budget
     spending plan of R423 million (73.50%) (under-spending) is mainly on Compensation of Employees
     because of the advertised posts that are in the process of being filled and 3% pay progression
     estimated from July which is in the process of being paid as well as Goods and Services because of
     the low spending on workshop and agricultural materials.


•    Programme Social Reintegration: The actual spending of R418 million (71.54%) against the budget
     spending plan of R432 million (73.86%) (under-spending) is mainly on Compensation of Employees
     because of the advertised posts that are in the process of being filled and 3% pay progression
     estimated from July which is in the process of being paid as well as Goods and Services due to slow
     clearing of payments for GG transport costs of vehicle.


•    Programme Facilities: The actual spending of R 1.115 billion (56.30%) against the budget spending
     plan of R1.491 billion (75.28%) (under-spending) is mainly due to the lower billing from the
     Department of Public Works for capital works projects than anticipated in projections .
     7. COMMENTS ON THE NATIONAL STATE OF EXPENDITURE FOR THE
    YEAR TO DATE PER ECONOMIC CLASSIFICATION: 31 DECEMBER 2011

•    Compensation of Employees: The actual spending of R7.707 billion (70.67%) against the budget spending plan
     of R8.421 billion (77.21%) (under-spending) is mainly due to the vacancies which the department is in the
     process of filling and because of 3% pay progression estimated from July in the process of being paid .


•    Goods & Services: The actual spending of R3.159 billion (70.21%) against the budget spending plan of R3.082
     billion (68.50%) (over-spending) is mainly because of higher than anticipated spending plan contractors, lease
     payment s, stores, travel & subsistence's and operating expenditure.


•    Transfers and Subsidies: The actual spending of R42 million (59.69%) against the budget spending plan of R34
     million (47.84%) (over-spending) is mainly due to more leave gratuity payments made to the employees as a
     result of the terminations of services than anticipated in the revised spending plan that was submitted to National
     Treasury in line with Adjusted Estimates of National Expenditure .


•    Payments for Capital Assets: The actual spending of R540 million (44.68%) against the budget spending plan
     of R894 million (73.95%) (under-spending) is mainly due to the low billing from the Department of Public Works
     for capital works projects than anticipated in the projections and infrastructure technology because the projects
     are not yet completed.