National Treasury: 2017/18 Provincial Expenditure – Northern Cape And

Preliminary outcomes of 2017/18 provincial expenditure as at 31 March 2018

Northern Cape and Limpopo

Intergovernmental Relations, National Treasury | SCOF | 29 May 2018 Provincial Adjustments, 2017/18

Table: Provincial adjustments for the 2017/18 financial year

Adjustments Adjustments Total Total Total Projected Main to to National Provincial Adjustments Adjusted (over)/ under Appropriation Equitable Conditional Adjustments Adjustments Appropriation expenditure Share Grants DoRA, as Other R thousand amended Gazettes* Eastern Cape 74,462,063 – – 100,000 100,000 782,410 882,410 75,344,473 750,274 Free State 32,898,318 – – – – 263,244 263,244 33,161,562 134,420 Gauteng 108,762,102 – – -150,000 -150,000 3,847,291 3,697,291 112,459,393 1,615,139 • Insert the pie Kw aZulu-Natal 115,258,467 – – 539,996 539,996 1,142,513 1,682,509 116,940,976 704,594 Limpopo 61,458,729 – 11,802 -68,282 -56,480 1,213,875 1,157,395 62,616,124 829,362 Mpumalanga 44,536,876 – 8,032 100,000 108,032 465,184 573,216 45,110,092 484,936 16,064,622 – – 100,000 100,000 579,838 679,838 16,744,460 211,787 chart Northern Cape North West 39,081,302 – 30,000 -300,000 -270,000 780,492 510,492 39,591,794 834,495 Western Cape 59,397,526 – – 100,000 100,000 359,735 459,735 59,857,261 706,832 Total 551,920,005 – 49,834 421,714 471,548 9,434,582 9,906,130 561,826,135 6,271,838 * Other gazettes includes Government Gazette No. 41197 tabled on the 25 October 2017 to provide for the immediate release of funds for disaster response (Provincial Disaster Grant) in the Western Cape; Government Gazette No. 41407 tabled on the 26 January 2018 for the Human Settlements Development Grant and; Government Gazette No. 41532 tabled on the 27 March 2018 for the Eduation Infrastructure Grant. Table : Provincial Adjustments by Province by Sector as at 31 March 2018

Total Adjustments, 2017/18

KwaZulu- Northern Western Eastern Cape Free State Gauteng Limpopo Mpumalanga North West Total Natal Cape Cape R thousand Sector Education 31 989 220 318 827 971 763 490 247 345 174 336 38 271 -7 268 92 779 2 389 231 Health 629 416 -38 000 1 985 788 382 005 563 262 140 016 196 399 138 857 6 676 4 004 419 Social Development 9 212 24 714 143 988 -55 000 7 778 28 429 51 704 -7 214 3 547 207 158 Public Works, Roads and Transport 84 841 -8 922 627 894 263 112 320 583 37 011 189 313 231 741 124 309 1 869 882 Agriculture 7 184 11 520 55 296 – -91 145 19 000 14 809 30 525 82 469 129 658 Cooperative Governance and Human 48 666 -8 148 -71 979 224 364 -113 932 198 906 108 973 -126 390 267 738 528 198 Settlements Other 71 102 61 762 128 333 104 538 223 504 -24 482 80 369 250 241 -117 783 777 584 Total 882 410 263 244 3 697 291 1 682 509 1 157 395 573 216 679 838 510 492 459 735 9 906 130 Economic classification Current payments 341 873 -10 703 3 927 806 420 417 355 322 842 922 329 791 319 246 288 494 6 815 167 Compensation of employees -303 797 36 061 1 241 618 -1 117 037 -350 723 -298 691 86 696 -191 021 -296 195 -1 193 089 Goods and services 644 732 -47 056 2 653 683 1 536 118 705 626 1 141 593 243 049 509 720 584 689 7 972 154 Interest and rent on land 937 292 32 505 1 336 419 20 46 547 – 36 102 Transfers and subsidies 108 964 145 404 -5 176 868 407 722 476 418 -141 673 131 452 85 506 339 499 -3 623 576 Payments for capital assets 431 574 120 798 4 935 317 853 459 303 479 -128 127 218 595 105 740 -179 720 6 661 115 Payments for financial assets – 7 745 11 036 911 22 176 94 – – 11 462 53 424 of which: NPNC 754 633 106 385 -2 479 644 1 946 087 1 204 639 1 000 034 374 547 595 773 935 650 4 438 105 Total 882 410 263 244 3 697 291 1 682 509 1 157 395 573 216 679 838 510 492 459 735 9 906 130 * 2017/18 Provincial adjustments includes all national and provincial adjustments (including roll-overs) as well as other relevant government gazettes. Provincial budgets and preliminary outcome as at 31 March 2018

Table: Provincial Aggregated Budgets and Expenditure as at 31 March 2018 Preliminary Preliminary % (Over)/ 2016/17: outcome as Year-on- Year-on- Main Adjusted outcome as under of Outcome as Adjustments % of (Over) Under year year budget budget at 31 March adjusted at 31 March adjusted increase growth 2018 budget 2017 budget R thousand Eastern Cape 74,462,063 882,410 75,344,473 74,594,199 99.0% – 750,274 1.0% 5,107,210 69,486,989 7.3% Free State 32,898,318 263,244 33,161,562 33,027,142 99.6% – 134,420 0.4% 2,135,363 30,891,779 6.9% Gauteng 108,762,102 3,697,291 112,459,393 110,844,255 98.6% – 1,615,139 1.4% 6,489,649 104,354,606 6.2% Kw aZulu-Natal 115,258,467 1,682,509 116,940,976 116,236,382 99.4% – 704,594 0.6% 6,643,725 109,592,657 6.1% Limpopo 61,458,729 1,157,395 62,616,124 61,786,762 98.7% – 829,362 1.3% 3,883,359 57,903,403 6.7% Mpumalanga 44,536,876 573,216 45,110,092 44,625,156 98.9% – 484,936 1.1% 3,217,499 41,407,657 7.8% Northern Cape 16,064,622 679,838 16,744,460 16,532,673 98.7% – 211,787 1.3% 1,356,765 15,175,908 8.9% North West 39,081,302 510,492 39,591,794 38,757,299 97.9% – 834,495 2.1% 2,784,742 35,972,557 7.7% Western Cape 59,397,526 459,735 59,857,261 59,150,430 98.8% – 706,832 1.2% 3,640,238 55,510,192 6.6% Total 551,920,005 9,906,130 561,826,135 555,554,298 98.9% – 6,271,838 1.1% 35,258,550 520,295,747 6.8%

2 Education preliminary outcome as at 31 March 2018

Table: Provincial Education Expenditure as at 31 March 2018 % share of Preliminary % share of Preliminary % (Over)/ Education 2016/17: outcome as Education Year-on- Main Adjusted outcome as under of to total Outcome as Adjustments % of (Over) Under to total year budget budget at 31 March adjusted Social at 31 March adjusted provincial growth 2018 budget Services 2017 budget expenditure R thousand expenditure Eastern Cape 32,989,055 31,989 33,021,044 32,806,981 99.4% – 214,063 0.6% 44.0% 57.0% 30,966,951 5.9% Free State 12,739,378 220,318 12,959,696 12,990,846 100.2% -31,150 – -0.2% 39.3% 54.3% 12,093,904 7.4% Gauteng 40,843,869 827,971 41,671,840 41,424,301 99.4% – 247,539 0.6% 37.4% 47.1% 39,409,926 5.1% Kw aZulu-Natal 47,476,599 763,490 48,240,089 48,322,338 100.2% -82,249 – -0.2% 41.6% 53.0% 45,662,557 5.8% Limpopo 28,783,149 247,345 29,030,494 28,831,176 99.3% – 199,318 0.7% 46.7% 58.8% 26,826,203 7.5% Mpumalanga 19,322,742 174,336 19,497,078 19,198,851 98.5% – 298,227 1.5% 43.0% 58.6% 17,809,481 7.8% Northern Cape 5,857,848 38,271 5,896,119 6,006,425 101.9% -110,306 – -1.9% 36.3% 52.6% 5,511,818 9.0% North West 15,281,697 -7,268 15,274,429 15,078,594 98.7% – 195,835 1.3% 38.9% 56.1% 14,086,368 7.0% Western Cape 20,629,914 92,779 20,722,693 20,562,551 99.2% – 160,142 0.8% 34.8% 46.6% 19,301,177 6.5%4 Total 223,924,251 2,389,231 226,313,482 225,222,063 99.5% -223,705 1,315,124 0.5% 40.5% 53.0% 211,668,385 6.4% Education: Compensation of Employees

Table: Provincial Personnel Expenditure: Education as at 31 March 2018 % share of % share of Preliminary Preliminary % (Over)/ Education Education 2016/17: outcome as Year-on- Mainb Adjusted outcome as under of Personnel Personnel Outcome as Adjustments % of (Over) Under year budget budget at 31 March adjusted to total to total at 31 March adjusted growth 2018 budget personnel Education 2017 budget R thousand expenditure expenditure Eastern Cape 26,137,084 -242,204 25,894,880 25,833,133 99.8% – 61,747 0.2% 54.4% 78.7% 23,871,773 8.2% Free State 10,061,109 49,284 10,110,393 10,299,359 101.9% -188,966 – -1.9% 51.1% 79.3% 9,698,929 6.2% Gauteng 30,247,915 236,308 30,484,223 31,439,074 103.1% -954,851 – -3.1% 50.0% 75.9% 28,660,401 9.7% Kw aZulu-Natal 39,869,285 122,678 39,991,963 40,067,052 100.2% -75,089 – -0.2% 55.9% 82.9% 37,608,395 6.5% Limpopo 23,334,306 -177,460 23,156,846 23,187,676 100.1% -30,830 – -0.1% 54.5% 80.4% 21,743,507 6.6% Mpumalanga 15,589,577 -153,007 15,436,570 15,309,614 99.2% – 126,956 0.8% 57.6% 79.7% 14,246,863 7.5% Northern Cape 4,458,257 52,246 4,510,503 4,609,348 102.2% -98,845 – -2.2% 50.0% 76.7% 4,289,234 7.5% North West 11,709,199 -54,651 11,654,548 11,589,120 99.4% – 65,428 0.6% 52.3% 76.9% 10,616,401 9.2% Western Cape 15,398,337 -135,247 15,263,090 15,179,454 99.5% – 83,636 0.5% 48.1% 73.8% 14,133,743 7.4% Total 176,805,069 -302,053 176,503,016 177,513,830 100.6% -1,348,581 337,767 -0.6% 53.1% 78.8% 164,869,246 7.7%

5 Education: LTSM preliminary outcome as at 31 March 2018

Table: Provincial Learner and Teacher Support Material: Education as at 31 March 2018

% share of Preliminary % (Over)/ Preliminary LTSM to 2016/17: Adjusted outcome as % under of Year-on-year outcome as at (Over) Under Education Outcome as at budget of adjusted adjusted growth 31 March 2018 G&S 31 March 2017 budget budget expenditure R thousand Eastern Cape 600 547 584 596 97.3% – 15 951 2.7% 20.6% 1 059 237 -44.8% Free State 158 189 64 866 41.0% – 93 323 59.0% 10.6% 100 093 -35.2% Gauteng 753 063 519 140 68.9% – 233 923 31.1% 12.3% 535 167 -3.0% KwaZulu-Natal 753 250 703 725 93.4% – 49 525 6.6% 16.2% 625 286 12.5% Limpopo 604 737 593 562 98.2% – 11 175 1.8% 24.3% 573 057 3.6% Mpumalanga 378 109 349 957 92.6% – 28 152 7.4% 20.6% 228 240 53.3% Northern Cape 62 223 50 694 81.5% – 11 529 18.5% 11.9% 16 205 212.8% North West 540 646 454 851 84.1% – 85 795 15.9% 39.2% 474 966 -4.2% Western Cape 203 626 191 315 94.0% – 12 311 6.0% 8.1% 122 419 56.3% Total 4 054 390 3 512 706 86.6% – 541 684 13.4% 17.5% 3 734 670 -5.9%

6 Education: Throughput Pass Rate

2017 Matrics 2017 Throughput Pass Rate 2016 Matrics

Throughput Throughput % change in Change in Traditional Passrate 1: Pass Rate 2: number of Gr12s Traditional Matric Traditional Matric Total Wrote Total Achieved Matric Pass Matric Pass Matric Pass Total Wrote Total Achieved writing matric in Pass Rate Pass Rate (2017- Rate Rate as % of Rate as % of 2017 compared 2016) Gr2 (2007) Gr10 (2015) to 2016

Eastern Cape 67 648 43 981 65.0% 22.2% 28.4% 82 902 49 168 59.3% 5.7% -18.4%

Free State 25 130 21 631 86.1% 40.3% 36.3% 26 786 23 629 88.2% -2.1% -6.2%

Gauteng 97 284 82 826 85.1% 57.9% 48.5% 103 829 88 381 85.1% 0.0% -6.3%

KwaZulu-Natal 124 317 90 589 72.9% 38.8% 36.8% 147 648 98 032 66.4% 6.5% -15.8%

Limpopo 83 228 54 625 65.6% 40.4% 32.7% 101 807 63 595 62.5% 3.2% -18.2%

Mpumalanga 48 483 36 273 74.8% 41.6% 39.0% 54 251 41 801 77.1% -2.2% -10.6%

North West 30 792 24 462 79.4% 37.0% 35.7% 32 045 26 448 82.5% -3.1% -3.9%

Northern Cape 8 735 6 608 75.6% 28.6% 32.7% 10 041 7 902 78.7% -3.0% -13.0%

Western Cape 48 867 40 440 82.8% 49.0% 55.8% 50 869 43 716 85.9% -3.2% -3.9%

National 534 484 401 435 75.1% 39.2% 37.4% 610 178 442 672 72.5% 2.6% -12.4%

Source: Page 51 NSC Exam Report 2017, Page 7 NSC

7 Health preliminary outcome as at 31 March 2018

Table: Provincial Health Expenditure as at 31 March 2018 Preliminary % share of % share of Preliminary % (Over)/ 2016/17: outcome as Health to Health to Year-on- Main Adjusted outcome as under of Outcome as Adjustments % of (Over) Under total total Social year budget budget at 31 March adjusted at 31 March adjusted provincial Services growth 2018 budget 2017 budget expenditure expenditure R thousand Eastern Cape 21,707,165 629,416 22,336,581 22,233,827 99.5% – 102,754 0.5% 29.8% 38.6% 20,506,179 8.4% Free State 9,774,916 -38,000 9,736,916 9,808,460 100.7% -71,544 – -0.7% 29.7% 41.0% 9,076,855 8.1% Gauteng 40,207,046 1,985,788 42,192,834 41,988,068 99.5% – 204,766 0.5% 37.9% 47.8% 37,440,067 12.1% Kw aZulu-Natal 39,548,473 382,005 39,930,478 39,902,070 99.9% – 28,408 0.1% 34.3% 43.8% 37,026,397 7.8% Limpopo 18,042,777 563,262 18,606,039 18,369,405 98.7% – 236,634 1.3% 29.7% 37.5% 17,217,613 6.7% Mpumalanga 12,020,037 140,016 12,160,053 12,073,999 99.3% – 86,054 0.7% 27.1% 36.9% 10,579,880 14.1% Northern Cape 4,433,893 196,399 4,630,292 4,569,488 98.7% – 60,804 1.3% 27.6% 40.0% 4,369,138 4.6% North West 10,461,340 138,857 10,600,197 10,307,023 97.2% – 293,174 2.8% 26.6% 38.4% 9,767,254 5.5% Western Cape 21,679,806 6,676 21,686,482 21,444,262 98.9% – 242,220 1.1% 36.3% 48.6% 20,078,184 6.8% Total 177,875,453 4,004,419 181,879,872 180,696,602 99.3% -71,544 1,254,814 0.7% 32.5% 42.5% 166,061,566 8.8%

Table: Payment trends on claims against the state 2012/ 13 2013/ 14 2014/ 15 2015/ 16 2016/ 17 2017/ 18 % Average Growth Rate

2016/ 17 - 2012/ 13 - 2017/ 18 2017/ 18 R tho usand Eastern Cape 63,359 74,775 74,868 255,561 208,503 423,263 103.0% 26.9% Free State 440 700 196 1,728 1,560 376 -75.9% 28.8% Gauteng 145,071 181,802 241,085 572,815 751,082 358,230 -52.3% 38.9% KwaZulu-Natal 20,679 97,433 103,536 90,367 251,278 461,919 83.8% 64.8% Limpopo 8,040 25,022 35,073 1,160 1,025 - -100.0% -33.8% M pumalanga 13,918 44,080 7,628 15,211 34,255 67,782 97.9% 19.7% Northern Cape 1,437 10,705 3,828 4,844 823 493 -40.1% -10.5% North West 5,502 10,896 13,246 6,422 29,539 22,927 -22.4% 40.0% Western Cape 6,928 23,015 19,272 28,073 38,381 - -100.0% 40.8% T o tal 265,374 468,428 498,732 976,181 1,316,446 1,334,990 1.4% 37.8%8 Health: Compensation of Employees

Table: Provincial Personnel Expenditure: Health as at 31 March 2018 % share of % share of Preliminary Preliminary % (Over)/ Health Health 2016/17: outcome as Year-on- Main Adjusted outcome as under of Personnel Personnel Outcome as Adjustments % of (Over) Under year budget budget at 31 March adjusted to total to total at 31 March adjusted growth 2018 budget personnel Health 2017 budget R thousand expenditure expenditure Eastern Cape 14,415,656 255,005 14,670,661 14,563,993 99.3% – 106,668 0.7% 30.7% 65.5% 13,454,333 8.2% Free State 6,381,379 -2,080 6,379,299 6,262,963 98.2% – 116,336 1.8% 31.0% 63.9% 5,814,798 7.7% Gauteng 23,815,004 1,150,399 24,965,403 25,085,114 100.5% -119,711 – -0.5% 39.9% 59.7% 23,289,574 7.7% Kw aZulu-Natal 25,246,832 -284,400 24,962,432 24,637,324 98.7% – 325,108 1.3% 34.4% 61.7% 23,354,896 5.5% Limpopo 12,999,393 24,767 13,024,160 12,976,375 99.6% – 47,785 0.4% 30.5% 70.6% 12,218,485 6.2% Mpumalanga 7,329,114 -83,497 7,245,617 7,212,993 99.5% – 32,624 0.5% 27.1% 59.7% 6,686,678 7.9% Northern Cape 2,430,992 69,149 2,500,141 2,573,190 102.9% -73,049 – -2.9% 27.9% 56.3% 2,322,039 10.8% North West 6,628,383 -76,388 6,551,995 6,415,629 97.9% – 136,366 2.1% 29.0% 62.2% 6,051,077 6.0% Western Cape 12,807,510 -64,526 12,742,984 12,659,506 99.3% – 83,478 0.7% 40.1% 59.0% 11,833,864 7.0% Total 112,054,263 988,429 113,042,692 112,387,087 99.4% -192,760 848,365 0.6% 33.6% 62.2% 105,025,744 7.0%

9 Health Spending Pressures (Goods and Services)

Table : Provincial Medical Supplies Expenditure: Health as at 31 March 2018 Table : Provincial Medicines Expenditure: Health as at 31 March 2018 % share of % share of Preliminary Preliminary Preliminary % (Over)/ M ed 2016/17: Preliminary % (Over)/ M ed 2016/17: outcome as outcome as Adjusted outcome as under of Supplies & Outcome as Year-on-year Adjusted outcome as under of Supplies & Outcome as Year-on-year % of (Over) Under % of (Over) Under budget at 31 March adjusted M edicine to at 31 March growth budget at 31 March adjusted M edicine to at 31 March growth adjusted adjusted 2018 budget Health G&S 2017 2018 budget Health G&S 2017 budget budget R thousand exp R thousand exp Eastern Cape 788,131 661,137 83.9% – 126,994 16.1% 11.4% 714,642 -7.5% Eastern Cape 1,612,018 1,975,147 122.5% -363,129 – -22.5% 34.0% 1,396,440 41.4% Free State 431,102 407,743 94.6% – 23,359 5.4% 15.4% 329,636 23.7% Free State 643,451 791,988 123.1% -148,537 – -23.1% 30.0% 769,499 2.9% Gauteng 2,420,300 2,607,490 107.7% -187,190 – -7.7% 19.6% 2,030,336 28.4% Gauteng 3,960,976 3,831,375 96.7% – 129,601 3.3% 28.8% 3,101,764 23.5% Kw aZulu-Natal 1,689,597 1,643,388 97.3% – 46,209 2.7% 13.3% 1,541,848 6.6% Kw aZulu-Natal 3,660,587 3,999,506 109.3% -338,919 – -9.3% 32.5% 3,554,428 12.5% Limpopo 422,895 407,707 96.4% – 15,188 3.6% 9.6% 307,209 32.7% Limpopo 1,359,379 1,354,329 99.6% – 5,050 0.4% 31.9% 1,088,944 24.4% Mpumalanga 342,097 364,714 106.6% -22,617 – -6.6% 10.6% 721,592 -49.5% Mpumalanga 1,303,647 1,407,903 108.0% -104,256 – -8.0% 41.0% 2,155,498 -34.7% Northern Cape 139,629 116,130 83.2% – 23,499 16.8% 8.0% 158,512 -26.7% Northern Cape 279,746 319,264 114.1% -39,518 – -14.1% 21.9% 311,074 2.6% North West 364,574 361,308 99.1% – 3,266 0.9% 12.1% 322,378 12.1% North West 800,721 731,151 91.3% – 69,570 8.7% 24.4% 736,331 -0.7% Western Cape 1,442,237 1,479,273 102.6% -37,036 – -2.6% 21.6% 1,344,775 10.0% Western Cape 1,476,550 1,426,031 96.6% – 50,519 3.4% 20.8% 1,357,475 5.1% Total 8,040,562 8,048,890 100.1% -246,843 238,515 -0.1% 15.2% 7,470,928 7.7% Total 15,097,075 15,836,694 104.9% -994,359 254,740 -4.9% 29.8% 14,471,453 9.4%

Table : Provincial Laboratory Services: Health as at 31 March 2018 Table : Provincial Property Payments Expenditure: Health as at 31 March 2018 % share of % share of Preliminary Preliminary Preliminary % (Over)/ M ed 2016/17: Preliminary % (Over)/ M ed 2016/17: outcome as outcome as Adjusted outcome as under of Supplies & Outcome as Year-on-year Adjusted outcome as under of Supplies & Outcome as Year-on-year % of (Over) Under % of (Over) Under budget at 31 March adjusted M edicine to at 31 March growth budget at 31 March adjusted M edicine to at 31 March growth adjusted adjusted 2018 budget Health G&S 2017 2018 budget Health G&S 2017 budget budget R thousand exp R thousand exp Eastern Cape 726,231 634,132 87.3% – 92,099 12.7% 10.9% 504,704 25.6% Eastern Cape 724,756 937,078 129.3% -212,322 – -29.3% 16.1% 675,326 38.8% Free State 262,212 334,506 127.6% -72,294 – -27.6% 12.7% 255,267 31.0% Free State 90,870 76,019 83.7% – 14,851 16.3% 2.9% 48,202 57.7% Gauteng 1,665,489 1,535,120 92.2% – 130,369 7.8% 11.5% 875,027 75.4% Gauteng 1,978,624 1,964,878 99.3% – 13,746 0.7% 14.8% 1,895,306 3.7% Kw aZulu-Natal 2,042,101 2,043,675 100.1% -1,574 – -0.1% 16.6% 1,618,865 26.2% Kw aZulu-Natal 1,844,004 1,824,410 98.9% – 19,594 1.1% 14.8% 1,518,449 20.1% Limpopo 418,947 478,246 114.2% -59,299 – -14.2% 11.3% 387,721 23.3% Limpopo 748,892 863,036 115.2% -114,144 – -15.2% 20.3% 568,676 51.8% Mpumalanga 440,156 411,384 93.5% – 28,772 6.5% 12.0% 747,446 -45.0% Mpumalanga 308,585 281,061 91.1% – 27,524 8.9% 8.2% 560,748 -49.9% Northern Cape 137,388 115,961 84.4% – 21,427 15.6% 7.9% 125,361 -7.5% Northern Cape 133,848 177,248 132.4% -43,400 – -32.4% 12.1% 175,369 1.1% North West 375,983 311,852 82.9% – 64,131 17.1% 10.4% 288,581 8.1% North West 418,947 458,020 109.3% -39,073 – -9.3% 15.3% 436,285 5.0% Western Cape 628,068 656,134 104.5% -28,066 – -4.5% 9.6% 557,112 17.8% Western Cape 1,091,522 1,051,185 96.3% – 40,337 3.7% 15.3% 1,064,555 -1.3% Total 6,696,575 6,521,010 97.4% -161,233 336,798 2.6% 12.3% 5,360,084 21.7% Total 7,340,048 7,632,935 104.0% -408,939 116,052 -4.0% 14.4% 6,942,916 9.9% 10 Provincial Health Payments for Capital Assets / Infrastructure by Category as at 31 March 2018

2017/18: Health Payments for capital assets by province as at 31 March 2018 VS 31 March 2017 120.0% 112.4% 104.3% 91.4% 100.8% 95.0% 101.0% 101.7% 100.0% 89.3% 89.8% 90.9% 92.8% 87.0% 84.6% 75.4% 77.7% 80.0% 69.1% 68.4% 56.0% 60.0%

40.0% Rand Rand Thousand

20.0%

0.0% EC FS GT KZN LIM MPU NC NW WC 2017/18 2016/17

2017/18 2016/17 Variance Preliminary % Audited % Audited Variance in % Outcome as Preliminary Outcome as Outcome spending Year on Year at 31 March Outcome at 31 March against growth 2018 against 2017 adjusted adjusted budgets Province budgets ECEastern Cape 1,168,397 89.3% 1,277,587 91.4% -109,190 -8.5% FSFree State 666,288 87.0% 714,398 104.3% -48,110 -6.7% GTGauteng 1,567,887 75.4% 1,582,158 69.1% -14,271 -0.9% KZNKwaZulu-Natal 1,592,145 100.8% 1,106,314 84.6% 485,831 43.9% LIMLimpopo 459,947 77.7% 421,876 89.8% 38,071 9.0% MPUMpumalanga 1,061,420 90.9% 509,496 95.0% 551,924 108.3% NCNorthern Cape 369,825 56.0% 395,290 68.4% -25,465 -6.4% NWNorth West 663,533 92.8% 600,349 101.0% 63,184 10.5%11 WCWestern Cape 751,898 101.7% 784,560 112.4% -32,662 -4.2% Total 8,301,340 86.4% 7,392,028 86.4% 909,312 12.3% Progress on health facilities identified to be ideal in 2017/18 • Ideal Clinics/Facilities • Clinics with good infrastructure, adequate staff, adequate medicine and supplies, good administrative processes, and sufficient adequate bulk supplies. • The National Health Council gave a directive that all Primary Health Care facilities must be Ideal within the next three years from April 2015.

Facilities conducted in the status determination are scored and categorized as: • no category achieved • silver (70-79 percent) • gold (80-89 percent) • platinum (90-99 percent) 12 Conditional grants preliminary outcome as at 31 March 2018

Table: Selected Conditional Grants Spending Rates as at 31 March 2018 Number of provinces spent less Number of provinces spent Number of provinces spent more than 90% between 90% and 95% (inclusive) than 95%

Agriculture, Forestry and Fisheries Comprehensive Agricultural Support Programme 3 FS, GT, KZN, 1 NC, 5 EC, LIM, MPU, NW, WC Grant Ilima/Letsema Projects Grant 3 FS, GT, KZN, 1 LIM, 5 EC , MPU, NC, NW, WC Land Care Programme Grant: Poverty Relief and 1 NC, 8 EC, FS, GT, KZN, LIM, MPU, NW, WC Infrastructure Development Arts and Culture Community Library Services Grant 2 GT, NC, 3 FS, LIM , NW, 4 EC, KZN, MPU, WC

Basic Education HIV and AIDS (Life Skills Education) Grant 2 LIM , NW, 7 EC, FS, GT, KZN, MPU, NC, WC Learners w ith Profound Intellectual Disabilities Grant 6 EC, FS, KZN, LIM, MPU, NC, 1 GT, 2 NW, WC Maths, Science and Technology Grant 5 EC, FS, GT, LIM, NW, 1 KZN, 3 MPU, NC, WC National School Nutrition Programme Grant 2 KZN, LIM, 7 EC, FS, GT, MPU, NC, NW, WC

Health Comprehensive HIV, AIDS and TB Grant 9 EC, FS, GT, KZN, LIM, MPU, NC, NW, WC Health Facility Revitalisation Grant 3 LIM , MPU, WC 4 EC, FS, GT, NW, 2 KZN, NC, National Professionals Training And Development 4 GT, KZN, MPU, NC, 5 EC, FS, LIM, NW, WC Grant

Human Settlements Human Settlements Development Grant 1 NC, 8 EC, FS, GT, KZN, LIM, MPU, NW, WC

Public Works Expanded Public Works Programme Integrated Grant 2 NC, NW, 7 EC , FS, GT, KZN, LIM, MPU, WC for Provinces Social Sector Expanded Public Works Programme 9 EC, FS, GT, KZN, LIM, MPU, NC, NW, WC Incentive Grant for Provinces

Social Development Early Childhood Development Grant 5 EC, FS, KZN, LIM, NW, 1 GT, 3 MPU, NC , WC Social Workers Employment Grant 6 EC, FS, GT, KZN, NC, NW, 3 LIM , MPU, WC

Sport and Recreation South Africa 13 Mass Participation and Sport Development Grant 1 FS, 3 EC, GT, NW, 5 KZN, LIM , MPU, NC, WC

Note: Percentages represent actual expenditure against allocations as per the Division of Revenue Amendment Act, 2017 including other relevant government gazettes. Human Settlements Development Grant (HSDG) preliminary outcome as at 31 March 2018 (1) Table: Provincial Human Settlements Development Grant Expenditure as at 31 March 2018 Division of Preliminary Preliminary % (Over)/ % share of 2016/17: Revenue outcome as Year-on- Government Provincial roll- Adjusted outcome as under of grant to Outcome as Act, 2017 % of (Over) Under year Gazettes overs Budget at 31 March adjusted total grant at 31 March (Act No. 3 of adjusted growth 2018 budget expenditure 2017 budget R thousand 2017) Eastern Cape 2,239,316 100,000 – 2,339,316 2,339,315 100.0% – 1 0.0% 11.6% 1,995,643 17.2% Free State 1,193,038 – – 1,193,038 1,192,716 100.0% – 322 0.0% 5.9% 1,099,349 8.5% Gauteng 5,528,050 -150,000 43,705 5,421,755 5,302,694 97.8% – 119,061 2.2% 26.3% 4,978,964 6.5% Kw aZulu-Natal 3,477,567 200,000 1,372 3,678,939 3,678,939 100.0% – – 0.0% 18.3% 3,123,330 17.8% Limpopo 1,319,493 -150,000 84,968 1,254,461 1,254,461 100.0% – – 0.0% 6.2% 1,518,244 -17.4% Mpumalanga 1,395,774 100,000 11,888 1,507,662 1,507,662 100.0% – – 0.0% 7.5% 1,302,757 15.7% Northern Cape 402,668 100,000 8,973 511,641 478,927 93.6% – 32,714 6.4% 2.4% 365,954 30.9% North West 2,186,679 -300,000 192,109 2,078,788 2,051,947 98.7% – 26,841 1.3% 10.2% 1,951,247 5.2% Western Cape 2,226,758 100,000 – 2,326,758 2,326,758 100.0% – – 0.0% 11.6% 2,000,811 16.3% Total 19,969,343 – 343,015 20,312,358 20,133,419 99.1% – 178,939 0.9% 100.0% 18,336,299 9.8%

Table: Provincial Human Settlements Development Grant: Delivery Performance as at 31 March 2018 Delivery Performance Targets % Delivery Performance Targets Annual Delivery Targets Achieved Achieved Total Total Total Sites Housing Sites Housing Sites Housing Delivery Delivery Delivery Serviced Units Serviced Units Serviced Units R thousand Targets Targets Targets Eastern Cape 7,248 11,180 18,428 8,649 11,158 19,807 119.3% 99.8% 107.5% Free State 6,848 5,225 12,073 6,661 3,504 10,165 97.3% 67.1% 84.2% Gauteng 19,799 32,350 52,149 7,910 16,956 24,866 40.0% 52.4% 47.7% Kw aZulu-Natal 3,345 23,790 27,135 6,280 19,849 26,129 187.7% 83.4% 96.3% Limpopo 5,151 9,956 15,107 3,064 9,008 12,072 59.5% 90.5% 79.9% Mpumalanga 4,053 7,799 11,852 4,230 8,734 12,964 104.4% 112.0% 109.4% Northern Cape 1,386 1,320 2,706 1,440 809 2,249 103.9% 61.3% 83.1% North West 5,249 12,618 17,867 3,670 6,552 10,222 69.9% 51.9% 57.2% Western Cape 7,860 11,094 18,954 7,482 8,120 15,602 95.2% 73.2% 82.3% Total 60,939 115,332 176,271 49,386 84,690 134,076 81.0% 73.4% 76.1% Source: National department of Human Settlements Human Settlements Development Grant (HSDG) preliminary outcome as at 31 March 2018 (2) .

Limpopo

16 Limpopo: Budget and expenditure Q3 & Q4 2017/18

Table : Limpopo: Summary budgets and expenditure as at 31 March 2018 2017/18 (3rd Quarter) 2017/18 (4th Quarter) All departments have underspent in 2017/18 except Safety and security Actual Preliminary Actual % (Over)/ Preliminary % (Over)/ department. spending as Projected outcome as Preliminary Main Adjusted Projected spending as under of Main Adjusted outcome as under of Adjustments % of (Over) / Adjustments % of (Over) / • R199.3 million and R236.6 million Appropriation Appropriation outcome at 31 Dec Adjusted Appropriation Appropriation at 31 Mar Adjusted Adjusted Under Adjusted Under underspending in Education and 2017 budget 2018 budget budget budget Health respectively R thousand Education 28 783 149 97 345 28 880 494 29 255 925 21 983 475 76.1% -375 431 -1.3% 28 783 149 247 345 29 030 494 28 831 176 99.3% 199 318 0.7% Compensation of employees Health 18 042 777 563 262 18 606 039 19 491 056 14 248 909 76.6% -885 017 -4.8% 18 042 777 563 262 18 606 039 18 369 405 98.7% 236 634 1.3% • R135.8 million overall Social Development 1 821 038 7 778 1 828 816 1 828 814 1 359 378 74.3% 2 0.0% 1 821 038 7 778 1 828 816 1 804 453 98.7% 24 363 1.3% underspending mainly in Health Public Works, Roads And Infrastructure 3 135 729 292 324 3 428 053 3 428 053 2 316 494 67.6% – 0.0% 3 135 729 292 324 3 428 053 3 292 495 96.0% 135 558 4.0% (R47.8 million) and Public Works, Agriculture 1 855 352 8 855 1 864 207 1 864 207 1 164 256 62.5% – 0.0% 1 855 352 -91 145 1 764 207 1 708 635 96.9% 55 572 3.1% Roads and Infrastructure (R29.9 million) - due to outstanding pay Transport 1 962 386 28 259 1 990 645 1 990 645 1 415 915 71.1% – 0.0% 1 962 386 28 259 1 990 645 1 961 081 98.5% 29 564 1.5% progression and delays of filling of Co-Operative Governance Human Settlements And 2Traditional 581 771 Affairs 86 068 2 667 839 2 667 842 1 607 018 60.2% -3 0.0% 2 581 771 -113 932 2 467 839 2 420 042 98.1% 47 797 1.9% vacancy posts respectively. Sport, Arts And Culture 460 288 5 721 466 009 466 009 332 201 71.3% – 0.0% 460 288 5 721 466 009 443 595 95.2% 22 414 4.8% Goods and services Safety, Security And Liaison 103 713 – 103 713 103 713 77 325 74.6% – 0.0% 103 713 – 103 713 103 914 100.2% -201 -0.2% Office Of The Premier 395 789 9 271 405 060 405 060 301 144 74.3% – 0.0% 395 789 9 271 405 060 401 927 99.2% 3 133 0.8% • Overall underspending of R409.4 Provincial Legislature 341 809 55 560 397 369 397 370 247 091 62.2% -1 0.0% 341 809 55 560 397 369 340 662 85.7% 56 707 14.3% million due to delays in procurement processes and Provincial Treasury 474 620 -41 711 432 909 430 430 310 787 71.8% 2 479 0.6% 474 620 -41 711 432 909 427 557 98.8% 5 352 1.2% payment of invoices. Economic Development, Environment And Tourism 1 500 308 194 663 1 694 971 1 694 971 1 200 458 70.8% – 0.0% 1 500 308 194 663 1 694 971 1 681 820 99.2% 13 151 0.8% Total 61 458 729 1 307 395 62 766 124 64 024 095 46 564 451 74.2% -1 257 971 -2.0% 61 458 729 1 157 395 62 616 124 61 786 762 98.7% 829 362 1.3% Capital assets Economic classification • Overall underspending of R314 Current payments 51 909 170 531 400 52 440 570 53 307 543 39 080 466 74.5% -866 973 -1.7% 51 909 170 355 322 52 264 492 51 718 966 99.0% 545 526 1.0% million, R113 million (Health)due to Compensation of employees 43 055 737 -211 674 42 844 063 43 131 014 31 976 250 74.6% -286 951 -0.7% 43 055 737 -350 723 42 705 014 42 569 181 99.7% 135 833 0.3% the delay in the delivery of medical Goods and services 8 852 563 743 074 9 595 637 10 175 659 7 103 645 74.0% -580 022 -6.0% 8 852 563 705 626 9 558 189 9 148 756 95.7% 409 433 4.3% equipment, and delays in projects within various departments Interest and rent on land 870 – 870 870 571 65.6% – 0.0% 870 419 1 289 1 029 79.8% 260 20.2%

Transfers and subsidies 7 452 060 641 820 8 093 880 8 106 137 6 052 080 74.8% -12 257 -0.2% 7 452 060 476 418 7 928 478 7 959 621 100.4% -31 143 -0.4% Payments for capital assets 2 097 499 111 999 2 209 498 2 588 236 1 410 581 63.8% -378 738 -17.1% 2 097 499 303 479 2 400 978 2 085 723 86.9% 315 255 13.1% Payments for financial assets – 22 176 22 176 22 179 21 324 96.2% -3 0.0% – 22 176 22 176 22 452 101.2% -276 -1.2% Total 61 458 729 1 307 395 62 766 124 64 024 095 46 564 451 74.2% -1 257 971 -2.0% 61 458 729 1 157 395 62 616 124 61 786 762 98.7% 829 362 1.3%

17 Limpopo : Education non-negotiables Q3 & Q4 2017/18

Table : Limpopo: Education budgets and expenditure as at 31 March 2018 • Non-negotiable items were 2017/18 (3rd Quarter) 2017/18 (4th Quarter) adequately budgeted for in 2017/18 and have all underspent Actual Preliminary Actual % (Over)/ Preliminary % (Over)/ spending as Projected outcome as Preliminary • Compensation of employees Main Adjusted Projected spending as under of Main Adjusted outcome as under of Adjustments % of (Over) / Adjustments % of (Over) / Appropriation Appropriation outcome at 31 Dec Adjusted Appropriation Appropriation at 31 Mar Adjusted Adjusted Under Adjusted Under • R30.8 million overspending - due 2017 budget 2018 budget budget budget to appointment of staff. R thousand Administration 1 862 399 -46 388 1 816 011 1 816 011 1 266 741 69.8% – 0.0% 1 862 399 -80 706 1 781 693 1 706 187 95.8% 75 506 4.2% • 56 444 employees as at 31 March Public Ordinary School Education 24 881 135 64 411 24 945 546 24 945 546 19 036 120 76.3% – 0.0% 24 881 135 46 152 24 927 287 24 865 303 99.8% 61 984 0.2% 2018, increased by 2 407 from Independent Schools Subsidies 126 973 – 126 973 126 973 93 393 73.6% – 0.0% 126 973 – 126 973 124 418 98.0% 2 555 2.0% January 2018. The increase in the Public Special School Education 488 368 -4 000 484 368 484 368 368 728 76.1% – 0.0% 488 368 -6 000 482 368 477 394 99.0% 4 974 1.0% overall number of employees’ in Education department is mainly Early Childhood Development 189 775 -494 189 281 189 281 107 331 56.7% – 0.0% 189 775 -27 669 162 106 153 325 94.6% 8 781 5.4% contributed by the appointment of Infrastructure Development 810 523 41 816 852 339 1 227 770 817 360 95.9% -375 431 -44.0% 810 523 298 568 1 109 091 1 096 188 98.8% 12 903 1.2% Educators which have increased Examination And Education Related Services 423 976 42 000 465 976 465 976 293 802 63.1% – 0.0% 423 976 17 000 440 976 408 361 92.6% 32 615 7.4% from 50 787 (March 2017) to 51 Total 28 783 149 97 345 28 880 494 29 255 925 21 983 475 76.1% -375 431 -1.3% 28 783 149 247 345 29 030 494 28 831 176 99.3% 199 318 0.7% 296 (March 2018). Economic classification Current payments 25 891 291 -18 108 25 873 183 25 873 183 19 198 146 74.2% – 0.0% 25 891 291 -133 158 25 758 133 25 629 910 99.5% 128 223 0.5% • Goods and Services Compensation of employees 23 334 306 -108 232 23 226 074 23 226 074 17 480 088 75.3% – 0.0% 23 334 306 -177 460 23 156 846 23 187 676 100.1% -30 830 -0.1% • Underspending of R159.1 million - Goods and services 2 556 985 90 124 2 647 109 2 647 109 1 718 058 64.9% – 0.0% 2 556 985 44 302 2 601 287 2 442 234 93.9% 159 053 6.1% due to delays in the appointment Agency and support / outsourced services 969 304 -69 805 899 499 899 499 644 729 71.7% – 0.0% 969 304 -69 238 900 066 869 734 96.6% 30 332 3.4% of services providers to revamp Inventory: Learner and teacher support material654 325 -10 524 643 801 643 801 431 185 67.0% – 0.0% 654 325 -49 588 604 737 593 562 98.2% 11 175 1.8% the departments’ ICT. Inventory: Other supplies 38 292 34 678 72 970 72 970 34 759 47.6% – 0.0% 38 292 28 761 67 053 53 036 79.1% 14 017 20.9% • LTSM recorded 98.2 percent Operating leases 74 569 -43 597 30 972 30 972 22 949 74.1% – 0.0% 74 569 -43 398 31 171 31 011 99.5% 160 0.5% spending in 2017/18 4th quarter, Property payments 68 429 50 840 119 269 119 269 140 174 117.5% – 0.0% 68 429 121 066 189 495 180 499 95.3% 8 996 4.7% increased by 31.2 percent from 3rd Transport provided: Departmental activity 278 955 215 279 170 279 170 189 987 68.1% – 0.0% 278 955 -21 903 257 052 256 167 99.7% 885 0.3% quarter. Travel and subsistence 84 611 8 604 93 215 93 215 92 270 99.0% – 0.0% 84 611 31 345 115 956 121 999 105.2% -6 043 -5.2% • Infrastructure Training and development 4 112 -234 3 878 3 878 2 064 53.2% – 0.0% 4 112 -353 3 759 3 098 82.4% 661 17.6% Interest and rent on land – – – – – – – – – – – – – – – • Marginal underspending due to Transfers and subsidies 2 114 230 53 038 2 167 268 2 167 268 2 013 071 92.9% – 0.0% 2 114 230 75 191 2 189 421 2 161 322 98.7% 28 099 1.3% invoices not paid Payments for capital assets 777 628 62 415 840 043 1 215 474 772 258 91.9% -375 431 -44.7% 777 628 305 312 1 082 940 1 039 944 96.0% 42 996 4.0% Payments for financial assets – – – – – – – – – – – – – – –

Total 28 783 149 97 345 28 880 494 29 255 925 21 983 475 76.1% -375 431 -1.3% 28 783 149 247 345 29 030 494 28 831 176 99.3% 199 318 0.7%

18 Limpopo : Health non-negotiables Q3 & Q4 2017/18

Table : Limpopo: Health budgets and expenditure as at 31 March 2018 Compensation of Employees 2017/18 (3rd Quarter) 2017/18 (4th Quarter) • Under spending of R47.8 million Actual Preliminary estimated. Actual % (Over)/ Preliminary % (Over)/ spending as Projected outcome as Preliminary Main Adjusted Projected spending as under of Main Adjusted outcome as under of Adjustments % of (Over) / Adjustments % of (Over) / • High attrition of Health Appropriation Appropriation outcome at 31 Dec Adjusted Appropriation Appropriation at 31 Mar Adjusted Adjusted Under Adjusted Under Professionals from 35 637 as at 31 2017 budget 2018 budget budget budget March 2017 to 34 624 as at 31 R thousand Administration 306 248 2 293 308 541 308 541 229 306 74.3% – 0.0% 306 248 2 293 308 541 294 650 95.5% 13 891 4.5% March 2018. District Health Services 11 421 926 516 136 11 938 062 12 733 924 9 327 992 78.1% -795 862 -6.7% 11 421 926 516 136 11 938 062 11 984 248 100.4% -46 186 -0.4% • 1 013 health employees left the Emergency Medical Services 728 879 5 000 733 879 733 879 539 904 73.6% – 0.0% 728 879 5 000 733 879 731 172 99.6% 2 707 0.4% department, majority of which are Provincial Hospital Services 2 364 443 55 766 2 420 209 2 469 363 1 828 600 75.6% -49 154 -2.0% 2 364 443 55 766 2 420 209 2 390 027 98.8% 30 182 1.2% doctors. Central Hospital Services 1 768 187 16 680 1 784 867 1 784 867 1 311 929 73.5% – 0.0% 1 768 187 16 680 1 784 867 1 727 015 96.8% 57 852 3.2% Health Sciences And Training 660 476 -48 938 611 538 611 538 457 505 74.8% – 0.0% 660 476 -48 938 611 538 563 283 92.1% 48 255 7.9% Goods and services Health Care Support Services 140 446 6 325 146 771 146 772 100 752 68.6% -1 0.0% 140 446 6 325 146 771 124 496 84.8% 22 275 15.2% • Overall underspending R5.1 million, Health Facilities Management 652 172 10 000 662 172 702 172 452 921 68.4% -40 000 -6.0% 652 172 10 000 662 172 554 514 83.7% 107 658 16.3% however high accruals are Total 18 042 777 563 262 18 606 039 19 491 056 14 248 909 76.6% -885 017 -4.8% 18 042 777 563 262 18 606 039 18 369 405 98.7% 236 634 1.3% anticipated as there were budget Economic classification pressures during the year. Current payments 16 684 081 587 723 17 271 804 18 156 820 13 333 351 77.2% -885 016 -5.1% 16 684 081 587 723 17 271 804 17 218 955 99.7% 52 849 0.3% Compensation of employees 12 999 393 24 767 13 024 160 13 323 007 9 693 958 74.4% -298 847 -2.3% 12 999 393 24 767 13 024 160 12 976 375 99.6% 47 785 0.4% Capital assets (CAPEX) Goods and services 3 684 688 562 956 4 247 644 4 833 813 3 639 393 85.7% -586 169 -13.8% 3 684 688 562 956 4 247 644 4 242 580 99.9% 5 064 0.1% • R131.8 under spending mainly Consultants and professional services: Business78 and 789 advisory services101 701 180 490 130 450 78 352 43.4% 50 040 27.7% 78 789 101 701 180 490 93 642 51.9% 86 848 48.1% under machinery and equipment Laboratory services 310 557 108 390 418 947 502 335 388 218 92.7% -83 388 -19.9% 310 557 108 390 418 947 478 246 114.2% -59 299 -14.2% due to delays in delivery of medical Contractors 241 886 -95 154 146 732 132 603 101 775 69.4% 14 129 9.6% 241 886 -95 154 146 732 127 568 86.9% 19 164 13.1% and allied equipment. Agency and support / outsourced services 133 661 -18 985 114 676 131 175 98 728 86.1% -16 499 -14.4% 133 661 -18 985 114 676 120 951 105.5% -6 275 -5.5% Fleet services (including government motor transport)152 468 16 783 169 251 215 635 142 558 84.2% -46 384 -27.4% 152 468 16 783 169 251 170 693 100.9% -1 442 -0.9% Inventory: Food and food supplies 72 980 45 059 118 039 104 522 81 992 69.5% 13 517 11.5% 72 980 45 059 118 039 108 948 92.3% 9 091 7.7% Inventory: Fuel, oil and gas 57 460 -36 097 21 363 28 716 19 030 89.1% -7 353 -34.4% 57 460 -36 097 21 363 2 575 12.1% 18 788 87.9% Inventory: Medical supplies 304 256 118 639 422 895 459 882 347 589 82.2% -36 987 -8.7% 304 256 118 639 422 895 407 707 96.4% 15 188 3.6% Inventory: Medicine 1 165 523 193 856 1 359 379 1 704 855 1 283 069 94.4% -345 476 -25.4% 1 165 523 193 856 1 359 379 1 354 329 99.6% 5 050 0.4% Property payments 577 121 171 771 748 892 893 372 654 670 87.4% -144 480 -19.3% 577 121 171 771 748 892 863 036 115.2% -114 144 -15.2% Interest and rent on land – – – – – – – – – – – – – – – Transfers and subsidies 706 760 35 762 742 522 742 522 593 170 79.9% – 0.0% 706 760 35 762 742 522 690 503 93.0% 52 019 7.0% Payments for capital assets 651 936 -60 223 591 713 591 714 322 388 54.5% -1 0.0% 651 936 -60 223 591 713 459 947 77.7% 131 766 22.3% Payments for financial assets – – – – – – – – – – – – – – – Total 18 042 777 563 262 18 606 039 19 491 056 14 248 909 76.6% -885 017 -4.8% 18 042 777 563 262 18 606 039 18 369 405 98.7% 236 634 1.3%

19 Limpopo: Infrastructure spending 2017/18

Table : Limpopo Infrastructure payments as at 31 March 2018 • Education and Health - have allocated majority of the budget to Upgrades & Preliminary Preliminary % (Over)/ outcome as Preliminary Additions. Main Adjusted outcome as under of Adjustments % of (Over) / Appropriation Appropriation at 31 Mar Adjusted Adjusted Under • 29.6 percent of 2017/18 Infrastructure budget was allocated to the Upgrades 2018 budget budget R thousand and Additions. Education 810 523 – 810 523 1 076 611 132.8% -266 088 -32.8% • Projected underspending of R1.5 billion or 29.8 percent, mainly contributed by Health 652 027 10 000 662 027 662 172 100.0% -145 -0.0% Social Development 36 298 – 36 298 35 638 98.2% 660 1.8% Public Works, Roads and Infrastructure at R1.7 billion. Public Works, Roads And Infrastructure 1 949 853 – 1 949 853 234 837 12.0% 1 715 016 88.0% • Spending peaked high in the 4th quarter, mainly contributed by Roads and Public Agriculture 172 992 -7 432 165 560 165 880 100.2% -320 -0.2% Transport 2 353 – 2 353 2 353 100.0% – - Works (from R67.2 million in Jan 2018 to R352.8 in March 2018) and Health Co-Operative Governance Human Settlements And 1Traditional 319 493 Affairs – 1 319 493 1 254 461 95.1% 65 032 4.9% (from R61.8 million in Jan 2018 to R76.4 in March 2018). Sport, Arts And Culture 48 749 100 48 849 34 526 70.7% 14 323 29.3% Economic Development, Environment And Tourism 59 345 – 59 345 81 704 137.7% -22 359 -37.7% Total 5 051 633 2 668 5 054 301 3 548 182 70.2% 1 506 119 29.8% Provincial expenditure by month for the 2017/18 financial year (Preliminary outcome) Apr 2017 May 2017 Jun 2017 Sep 2017 Oct 2017 Nov 2017 Dec 2017 Jan 2018 Feb 2018 Mar 2018 Total

Actuals R thousand Education – 96 698 96 756 32 544 80 506 70 673 30 279 19 049 66 647 186 732 1 076 611 Health 37 647 75 144 42 381 63 506 29 349 67 902 57 775 61 805 71 077 76 438 662 172 Social Development 55 – 2 390 235 1 587 85 5 313 6 770 6 800 6 741 35 638 Public Works, Roads And Infrastructure – 14 387 4 198 23 220 24 117 23 459 33 200 19 550 26 066 36 051 234 837 Agriculture 576 7 128 9 540 8 434 14 061 7 321 10 785 31 289 15 301 51 319 165 880 Transport – 292 – 292 292 292 – 292 292 309 2 353 Co-Operative Governance Human Settlements And Traditional43 514 Affairs61 368 76 547 88 785 82 474 94 622 97 591 67 197 90 825 352 767 1 254 461 Sport, Arts And Culture 5 189 – 787 1 207 1 461 1 135 1 891 1 242 2 224 15 180 34 526 Economic Development, Environment And Tourism – 4 900 230 820 1 223 20 398 3 209 2 170 13 277 27 258 81 704 Total 86 981 259 917 232 829 219 043 235 070 285 887 240 043 209 364 292 509 752 795 3 548 182

North West Infrastructure spending trends - 2017/18 800 000 700 000 600 000 500 000 400 000 300 000

Rand Thousand 200 000 100 000 20 – Apr 2017 May 2017 Jun 2017 Sep 2017 Oct 2017 Nov 2017 Dec 2017 Jan 2018 Feb 2018 Mar 2018 Total Infrastructure 86 981 259 917 232 829 219 043 235 070 285 887 240 043 209 364 292 509 752 795 Limpopo Provincial Specific Issues (1)

Health • The major risk in the department is the continuous high accruals which consume a substantial amount in the following years budget. Department has experienced an increase in its accruals and payables not recognised from R775 million in 2015/16 to R1.050 billion in 2016/17, which translate to 35.5%. • High composition of budget is CoE – 80 percent therefore puts pressure on Goods and Services • NHLS – gatekeeping has been introduced in October 2017 with a saving of R795 million to date. More savings could be realised. • Inefficiencies with regard to management of committed overtime and sessional doctors. • Whilst medico legal claim is generally a problem in this sector, it’s rising with a contingent liability of R3.6 billion (15 February 2018) compared to R2.1 billion at 31 March 2017. R26.7 million was paid in the current year. • Department has regressed from unqualified to qualified audit opinion, qualification matters include Assets, Revenue, Employee Costs, Employee Benefits and Commitments. • High levels of irregular expenditure (non compliance with SCM legislation) – R1.1 million in 2016/17. Education • High attrition of educators [from 50 726 as at 31 March 2013 to 48 919 as at 31 March 2018], however there is still a problem with excess educators. • Inefficient systems for personnel and records management [i.e. HR, procurement documents, Immovable tangible capital assets], hence the disclaimer audit opinion for the last four years and a qualified opinion in 2016/17. • Inadequate SCM management unit as there are constant delays in terms of procurement and challenges with LOGIS. • Accelerated infrastructure programme and incompleteness of commitment register which has seen the grant spend 104 percent as at 31 January 2018.

Limpopo Provincial Specific Issues (2)

Co-operative Governance and Human Settlements • Delay in implementing of housing projects, R150 million lost in 2017/18 • Senior management instability

Financial management challenges • Total accruals and payables not recognised amounted to R1.3 billion in 2016/17 which has serious implications for emerging businesses. • Accumulated unauthorised expenditure is sitting at R461 million in 2016/17, whilst irregular expenditure amounted to R4 billion (Education R2 billion, Health R1.1 billion). • Accumulated fruitless and wasteful expenditure amounted to R263 million in 2016/17 (Education R186 million, Health R8.4 million, and Cooperative Governance, Human Settlements and Traditional Affairs [GHSTA] - R52 million).

Other issues • Challenges with procurement and LOGIS is delaying in the procurement of goods and services. • Slow spending in some grants during the year with a spike in March; HIV Aids Life Skills spent 64.8 percent, Maths Science and Technology (78.6 percent), Learners with Profound Disabilities (35.9 percent), Health Facility Revitalization Grant (81.8 percent) and Early Childhood Development (87.7 percent). • Slow delivery of infrastructure and challenges with Implementing Agents Limpopo Provincial Specific Issues (2) .

Northern Cape

24 Northern Cape : Budget and expenditure Q3 & Q4 2017/18

Table : Northern Cape: Summary budgets and expenditure as at 31 March 2018 2017/18 (3rd Quarter) 2017/18 (4th Quarter) • The projections in December 2017 Actual Preliminary were largely unreliable. Actual % (Over)/ Preliminary % (Over)/ spending as Projected outcome as Preliminary Main Adjusted Projected spending as under of Main Adjusted outcome as under of Adjustments % of (Over) / Adjustments % of (Over) / • All departments that projected to Appropriation Appropriation outcome at 31 Dec Adjusted Appropriation Appropriation at 31 Mar Adjusted Adjusted Under Adjusted Under overspend have underspent in 2017 budget 2018 budget budget budget R thousand 2017/18 with the exception of Education 5,857,848 38,271 5,896,119 6,069,346 4,698,701 79.7% -173,227 -2.9% 5,857,848 38,271 5,896,119 6,006,425 101.9% -110,306 -1.9% Education. Health 4,433,893 196,399 4,630,292 4,722,157 3,343,297 72.2% -91,865 -2.0% 4,433,893 196,399 4,630,292 4,569,488 98.7% 60,804 1.3% • However, overspending in Social Development 818,612 51,704 870,316 870,316 605,025 69.5% – 0.0% 818,612 51,704 870,316 838,948 96.4% 31,368 3.6% Compensation of employees is Provincial Legislature 194,971 21,500 216,471 209,223 131,883 60.9% 7,248 3.3% 194,971 21,500 216,471 198,584 91.7% 17,887 8.3% largely in Education and Health. Office Of The Premier 236,119 10,407 246,526 251,526 187,488 76.1% -5,000 -2.0% 236,119 10,407 246,526 241,594 98.0% 4,932 2.0% Transport, Safety And Liaison 388,899 28,647 417,546 417,546 316,123 75.7% – 0.0% 388,899 28,647 417,546 410,249 98.3% 7,297 1.7% • Goods and service pressures are Roads And Public Works 1,683,768 23,539 1,707,307 1,844,434 1,397,657 81.9% -137,127 -8.0% 1,683,768 160,666 1,844,434 1,844,077 100.0% 357 0.0% due to the accrual. Economic Development And Tourism 296,518 6,573 303,091 303,091 188,981 62.4% – 0.0% 296,518 6,573 303,091 284,997 94.0% 18,094 6.0% • Pressures on transfers were mainly Sport, Arts And Culture 371,088 19,249 390,337 390,531 255,177 65.4% -194 0.0% 371,088 19,249 390,337 355,285 91.0% 35,052 9.0% due to the resignation of staff Provincial Treasury 299,179 19,006 318,185 312,754 212,816 66.9% 5,432 1.7% 299,179 19,006 318,185 292,446 91.9% 25,739 8.1% mainly in Education and Health.. Cooperative Governance, Human Settlements And Traditional725,432 Affairs 8,973 734,405 744,654 551,751 75.1% -10,249 -1.4% 725,432 108,973 834,405 743,192 89.1% 91,213 10.9% Agriculture, Land Reform And Rural Development 609,304 14,809 624,113 617,394 418,154 67.0% 6,719 1.1% 609,304 14,809 624,113 601,935 96.4% 22,178 3.6% • Under spending on capital is Environment And Nature Conservation 148,991 3,634 152,625 152,625 106,781 70.0% – 0.0% 148,991 3,634 152,625 145,453 95.3% 7,172 4.7% mainly on Health as a results of Total 16,064,622 442,711 16,507,333 16,905,596 12,413,834 75.2% -398,264 -2.4% 16,064,622 679,838 16,744,460 16,532,673 98.7% 211,787 1.3% delay in delivering of emergency Economic classification equipment's. Current payments 12,864,182 192,664 13,056,846 13,526,911 10,068,837 77.1% -470,066 -3.6% 12,864,182 329,791 13,193,973 13,380,799 101.4% -186,826 -1.4%

Compensation of employees 9,036,584 86,696 9,123,280 9,308,414 6,944,308 76.1% -185,134 -2.0% 9,036,584 86,696 9,123,280 9,224,271 101.1% -100,991 -1.1% Goods and services 3,824,129 105,922 3,930,051 4,215,438 3,121,474 79.4% -285,388 -7.3% 3,824,129 243,049 4,067,178 4,152,479 102.1% -85,301 -2.1% Interest and rent on land 3,469 46 3,515 3,059 3,055 86.9% 456 13.0% 3,469 46 3,515 4,049 115.2% -534 -15.2% Transfers and subsidies 1,664,785 31,452 1,696,237 1,732,859 1,321,163 77.9% -36,622 -2.2% 1,664,785 131,452 1,796,237 1,697,488 94.5% 98,749 5.5% Payments for capital assets 1,535,655 218,595 1,754,250 1,645,725 1,023,733 58.4% 108,525 6.2% 1,535,655 218,595 1,754,250 1,454,283 82.9% 299,967 17.1% Payments for financial assets – – – 101 101 – -101 – – – – 103 – -103 – Total 16,064,622 442,711 16,507,333 16,905,596 12,413,834 75.2% -398,263 -2.4% 16,064,622 679,838 16,744,460 16,532,673 98.7% 211,787 1.3%

25 Northern Cape: Education non-negotiables Q3 & Q4 2017/18

Table : Northern Cape: Education budgets and expenditure as at 31 March 2018 • Education has been consistent on 2017/18 (3rd Quarter) 2017/18 (4th Quarter) the projected over spending. Actual Preliminary Actual % (Over)/ Preliminary % (Over)/ spending as Projected outcome as Preliminary Main Adjusted spending as under of Main Adjusted outcome as under of • Non-negotiable items were Adjustments % of (Over) / Adjustments % of (Over) / Appropriation Appropriation at 31 Dec Adjusted Appropriation Appropriation at 31 Mar Adjusted adequately budgeted for in 2017/18 Adjusted Under Adjusted Under 2017 budget 2018 budget budget budget R thousand and have all underspent. However Administration 653,470 -6,117 647,353 499,964 77.2% 10,503 1.6% 653,470 -6,117 647,353 618,086 95.5% 29,267 4.5% the following were concern. Public Ordinary School Education 4,190,024 52,532 4,242,556 3,402,853 80.2% -178,836 -4.2% 4,190,024 52,532 4,242,556 4,385,581 103.4% -143,025 -3.4% Independent Schools Education 9,169 – 9,169 9,164 99.9% – 0.0% 9,169 – 9,169 9,164 99.9% 5 0.1% • LTSM budget used to Public Special Schools Education 140,181 14 140,195 109,544 78.1% -2,233 -1.6% 140,181 14 140,195 141,804 101.1% -1,609 -1.1% augment pressures on Early Childhood Development 99,264 -5,000 94,264 76,302 80.9% -738 -0.8% 99,264 -5,000 94,264 94,281 100.0% -17 0.0% COE. Infrastructure Development 623,578 – 623,578 485,102 77.8% – 0.0% 623,578 – 623,578 609,595 97.8% 13,983 2.2% Examination And Education Related Services 142,162 -3,158 139,004 115,772 83.3% -1,923 -1.4% 142,162 -3,158 139,004 147,914 106.4% -8,910 -6.4% • Overspending in other Total 5,857,848 38,271 5,896,119 4,698,701 79.7% -173,227 -2.9% 5,857,848 38,271 5,896,119 6,006,425 101.9% -110,306 -1.9% items is due to exams Economic classification intervention programme, Current payments 4,830,296 38,271 4,868,567 3,862,260 79.3% -179,418 -3.7% 4,830,296 38,271 4,868,567 5,036,606 103.5% -168,039 -3.5% operation clean audit and Compensation of employees 4,458,257 52,246 4,510,503 3,493,285 77.4% -141,485 -3.1% 4,458,257 52,246 4,510,503 4,609,348 102.2% -98,845 -2.2% Goods and services 372,039 -13,975 358,064 368,877 103.0% -37,835 -10.6% 372,039 -13,975 358,064 427,138 119.3% -69,074 -19.3% mobile class relocation to Agency and support / outsourced services24,035 -1,500 22,535 48,782 216.5% -26,968 -119.7% 24,035 -1,500 22,535 50,373 223.5% -27,838 -123.5% deal with excess leaners Inventory: Learner and teacher support material46,841 15,382 62,223 71,074 114.2% -10,622 -17.1% 46,841 15,382 62,223 50,694 81.5% 11,529 18.5% Inventory: Other supplies 31,409 -15,122 16,287 35,164 215.9% -21,506 -132.0% 31,409 -15,122 16,287 57,758 354.6% -41,471 -254.6% • Compensation of employees Operating leases 8,011 – 8,011 14,230 177.6% -8,596 -107.3% 8,011 – 8,011 17,702 221.0% -9,691 -121.0% • Overspending is mainly Property payments 56,625 4,530 61,155 61,846 101.1% -7,825 -12.8% 56,625 4,530 61,155 107,625 176.0% -46,470 -76.0% Transport provided: Departmental activity 1,690 2,420 4,110 6,606 160.7% -2,705 -65.8% 1,690 2,420 4,110 6,792 165.3% -2,682 -65.3% due to the pressures from Training and development 10,888 -260 10,628 5,652 53.2% 4,976 46.8% 10,888 -260 10,628 7,591 71.4% 3,037 28.6% the previous financial year Interest and rent on land – – – 98 – -98 – – – – 120 – -120 – ( learner number increase) Transfers and subsidies 466,254 – 466,254 424,041 90.9% -6,404 -1.4% 466,254 – 466,254 475,890 102.1% -9,636 -2.1% Payments for capital assets 561,298 – 561,298 412,400 73.5% 12,595 2.2% 561,298 – 561,298 493,929 88.0% 67,369 12.0% • Terminated a total of 175 Payments for financial assets – – – – – – – – – – – – – – post in 2017/18 of which Total 5,857,848 38,271 5,896,119 4,698,701 79.7% -173,227 -2.9% 5,857,848 38,271 5,896,119 6,006,425 101.9% -110,306 -1.9% 61 is educators and 117 others. COE remained under pressure regardless of these reductions. • Transfers and subsidies pressures relates to the resignation of staff as reflected above. 26

Northern Cape: Health non-negotiables Q3 & Q4 2017/18

Table : Northern Cape: Health budgets and expenditure as at 31 March 2018 • Health underspends its 2017/18 (3rd Quarter) 2017/18 (4th Quarter) allocation by R60.8 million or Actual Preliminary Actual % (Over)/ Preliminary % (Over)/ spending as Projected outcome as Preliminary 1.3%. Main Adjusted spending as under of Main Adjusted outcome as under of Adjustments % of (Over) / Adjustments % of (Over) / Appropriation Appropriation at 31 Dec Adjusted Appropriation Appropriation at 31 Mar Adjusted Adjusted Under Adjusted Under 2017 budget 2018 budget • Of the total underspending budget budget R thousand reported, R50.9 million or 84% is Administration 192,418 1,939 194,357 178,029 91.6% -34,972 -18.0% 192,418 1,939 194,357 230,180 118.4% -35,823 -18.4% District Health Services 1,986,793 10,567 1,997,360 1,425,304 71.4% -15,584 -0.8% 1,986,793 10,567 1,997,360 2,065,763 103.4% -68,403 -3.4% on conditional grants. Emergency Medical Services 297,695 27,019 324,714 217,331 66.9% -5,921 -1.8% 297,695 27,019 324,714 301,926 93.0% 22,788 7.0% Provincial Hospital Services 341,464 3,110 344,574 252,877 73.4% -4,176 -1.2% 341,464 3,110 344,574 339,252 98.5% 5,322 1.5% • Vulindlela reported more than Central Hospital Services 934,723 32,998 967,721 760,924 78.6% -53,551 -5.5% 934,723 32,998 967,721 999,748 103.3% -32,027 -3.3% R400 million commitment Health Sciences And Training 130,073 – 130,073 84,068 64.6% 13,945 10.7% 130,073 – 130,073 103,913 79.9% 26,160 20.1% suggesting that Health Health Care Support Services 104,591 4,259 108,850 55,157 50.7% 8,394 7.7% 104,591 4,259 108,850 -4,270 -3.9% 113,120 103.9% Health Facilities Management 446,136 116,507 562,643 369,607 65.7% – 0.0% 446,136 116,507 562,643 532,976 94.7% 29,667 5.3% overspent its allocation. Total 4,433,893 196,399 4,630,292 3,343,297 72.2% -91,865 -2.0% 4,433,893 196,399 4,630,292 4,569,488 98.7% 60,804 1.3% Economic classification • Underspending on health is Current payments 3,808,170 14,720 3,822,890 2,948,442 77.1% -208,302 -5.4% 3,808,170 14,720 3,822,890 4,036,787 105.6% -213,897 -5.6% mainly under payments of Compensation of employees 2,430,992 69,149 2,500,141 1,925,705 77.0% -64,650 -2.6% 2,430,992 69,149 2,500,141 2,573,190 102.9% -73,049 -2.9% capital assets Goods and services 1,377,178 -54,429 1,322,749 1,019,886 77.1% -140,801 -10.6% 1,377,178 -54,429 1,322,749 1,459,762 110.4% -137,013 -10.4% Laboratory services 137,388 – 137,388 69,925 50.9% 8,657 6.3% 137,388 – 137,388 115,961 84.4% 21,427 15.6% (emergency/rescue equipment Legal services 4,665 – 4,665 18,231 390.8% -14,730 -315.8% 4,665 – 4,665 18,806 403.1% -14,141 -303.1% and assistive device.) Contractors 119,093 -5,905 113,188 204,470 180.6% -118,713 -104.9% 119,093 -5,905 113,188 279,707 247.1% -166,519 -147.1% Agency and support / outsourced services101,295 -5,158 96,137 79,621 82.8% -8,800 -9.2% 101,295 -5,158 96,137 89,781 93.4% 6,356 6.6% • Pressure on CoE emanated Fleet services (including government motor80,870 transport) – 80,870 37,757 46.7% 22,908 28.3% 80,870 – 80,870 61,444 76.0% 19,426 24.0% from the precious financial Inventory: Food and food supplies 27,696 -2,180 25,516 20,227 79.3% -5,191 -20.3% 27,696 -2,180 25,516 26,194 102.7% -678 -2.7% Inventory: Fuel, oil and gas 20,617 – 20,617 11,846 57.5% 2,626 12.7% 20,617 – 20,617 12,421 60.2% 8,196 39.8% (2016/17) and 38 Appointments Inventory: Materials and supplies 4,850 -391 4,459 811 18.2% 2,445 54.8% 4,850 -391 4,459 965 21.6% 3,494 78.4% in 2017/18. Inventory: Medical supplies 143,174 -3,545 139,629 89,454 64.1% -187 -0.1% 143,174 -3,545 139,629 116,130 83.2% 23,499 16.8% Inventory: Medicine 279,746 – 279,746 182,784 65.3% -25,529 -9.1% 279,746 – 279,746 319,264 114.1% -39,518 -14.1% • COE needs to be managed to Property payments 133,848 – 133,848 122,907 91.8% -25,098 -18.8% 133,848 – 133,848 177,248 132.4% -43,400 -32.4% Training and development 28,249 -279 27,970 2,427 8.7% 18,527 66.2% 28,249 -279 27,970 2,938 10.5% 25,032 89.5% address the expected pressures Interest and rent on land – – – 2,851 – -2,851 – – – – 3,835 – -3,835 – as a result of new health Transfers and subsidies 152,704 -5,471 147,233 141,560 96.1% -21,853 -14.8% 152,704 -5,471 147,233 162,876 110.6% -15,643 -10.6% facilities with no funding for Payments for capital assets 473,019 187,150 660,169 253,295 38.4% 138,290 20.9% 473,019 187,150 660,169 369,825 56.0% 290,344 44.0% Payments for financial assets – – – – – – – – – – – – – – operationalisation. Total 4,433,893 196,399 4,630,292 3,343,297 72.2% -91,865 -2.0% 4,433,893 196,399 4,630,292 4,569,488 98.7% 60,804 1.3% • Goods and services pressure are due to the accruals from the previous financial year. • Department is expected to journalise the from payments of capital assets to other areas of pressure. However, the scope is 27 very limited. Northern Cape: Infrastructure spending 2017/18

Table : Northern Cape Infrastructure payments as at 31 March 2018 • The province is prioritising the maintenance and repair of existing infrastructure Preliminary Preliminary % (Over)/ assets. outcome as Preliminary Main Adjusted outcome as under of Adjustments % of (Over) / • 40.5% of 2017/18 infrastructure was allocated to the maintenance and repair. Appropriation Appropriation at 31 Mar Adjusted Adjusted Under 2018 budget budget • Infrastructure budget revised upwards by R329.4 million from R2.5 billion to R thousand R2.8 billion Education 612,267 – 612,267 605,496 98.9% 6,771 1.1% Health 443,753 116,507 560,260 559,602 99.9% 658 0.1% • Preliminary overspending stands at R17.3 million or 0.6% Social Development 27,460 39,492 66,952 62,882 93.9% 4,070 6.1% • Reported overspending is mainly under Maintenance and repair (R51.3 million) Roads And Public Works 1,216,513 152,501 1,369,014 1,386,676 101.3% -17,662 -1.3% under both Roads and Public Works and Education. Sport, Arts And Culture 36,965 16,722 53,687 33,972 63.3% 19,715 36.7% • March expenditure spike – R573 million spent in one month (March 2018) Agriculture, Land Reform And Rural Development 135,031 4,220 139,251 170,775 122.6% -31,524 -22.6% mainly on Health, Education and Agriculture, Land Reform and Rural Total 2,472,639 329,442 2,802,081 2,819,403 100.6% -17,322 -0.6% Development. Provincial expenditure by month for the 2017/18 financial year (Preliminary outcome) Apr 2017 May 2017 Jun 2017 Sep 2017 Oct 2017 Nov 2017 Dec 2017 Jan 2018 Feb 2018 Mar 2018 Total

Actuals R thousand Education 26,130 53,290 44,746 9,278 52,970 62,975 50,429 4,092 5,893 121,231 605,496 Health 612 (612) 5,285 30,013 36,987 50,693 53,946 32,044 48,423 263,722 559,602 Social Development 48 6,137 2,212 6,270 5,422 6,950 8,920 663 6,272 9,548 62,882 Roads And Public Works 20,225 120,875 70,881 140,116 119,809 156,193 236,375 51,229 160,685 125,619 1,386,676 Sport, Arts And Culture 6 1,710 2,312 2,746 5,686 5,372 2,669 337 611 7,233 33,972 Agriculture, Land Reform And Rural Development – 9,661 13,866 10,312 5,555 22,344 16,567 1,457 14,440 46,542 170,775 Total 47,021 191,061 139,302 198,735 226,429 304,527 368,906 89,822 236,324 573,895 2,819,403 Northern Cape Infrastructure spending trends - 2017/18 700,000

600,000

500,000

400,000

300,000

200,000 Rand Thousand 100,000

– Apr 2017 May 2017 Jun 2017 Sep 2017 Oct 2017 Nov 2017 Dec 2017 Jan 2018 Feb 2018 Mar 2018 28 Total Infrastructure 47,021 191,061 139,302 198,735 226,429 304,527 368,906 89,822 236,324 573,895 Northern Cape: Provincial Specific Issues (1)

Health • Governance – Instability in senior management positions, making it difficult to implement corrective actions. The provincial EXCO has placed the department under section 18 (2) (g) of the PFMA. • Contingent liabilities (R1.5 billion) – constantly increasing medical negligence claims with medico-legal claims remaining the biggest risk. • Accumulated unauthorised expenditure amounts to R381.2 million in 2016/17 • Accruals – high percentage of unpaid invoices (R339.9 million in 2016/17: Audited) hence pressures on goods and services. • Cash flow – Department reported a total of R338.8 overdraft as at march 2018 • The increasing over spending on compensation of employees. 2018/19 might also overspend on the COE. • Operationalization of new health facilities presents serious challenges to the departmental baseline due to the non-availability of operationalization budget for the following facilities: • The new De Aar Hospital was been completed and ready for operation in 2016/17 and handed over to the department in July 2016. However, there is no funding to operationalize the hospital. • Dr Harry Surtie Hospital is also a challenge in terms of the recruitment and also attracting professionals to Upington. Currently just 2/3rds of the beds are operational due to staffing constraints. • New Mental Hospital is expected to be completed in the 2018/19 financial year and similarly no provision has been made to operationalize the hospital. • The Kimberley Hospital has been upgraded to a Tertiary Hospital and is currently providing certain tertiary services without funding. This puts both the department and the province’s budget under severe budget strain. Education • Personnel expenditure – The department should improve its planning and budgeting for compensation of employees. • Overspending in the current financial years is due to the previous financial year’s pressure. The pressure might overlap over the MTEF if not addressed by PT and Education.

Northern Cape: Provincial Specific Issues (2)

Social Development • Substance abused treatment center completion was delayed by the court case hence was note operationalised in 2017/18. • The R14 million allocated for operationalisation was not transferred to the province for 2017/18 • The center is expected to be operational in July 2018.

Infrastructure delivery • The province heavily depends on IDT to implement its infrastructure projects for Health and Education. • Monitoring of projects is a main challenge due to capacity within the departments which results in use of the consultants • Projects takes too long to be completed which delays service and impact negatively on the budget. • Termination of contracts of the main contractors is the main concern. Majority of projects completed have their main contractor terminated due to poor workmanship, performance and cash flow problems. • John Taolo Gaetsewe District is challenged with the dolomites which contributes in projects taking longer than expected. Cross Cutting issues and achievements • Own Revenue – Department of transport, Safety and Liaison has successfully moved the function of collecting the MVL from 10 municipalities to SAPO and has started to yield the positive results. • Cash management: The management of cash has regressed. The province closed-off the 2016/17 and 2017/18 financial years with a positive cash balances of R167.6 million and R86.8 million respectively. • Irregular expenditure has accumulated to R10.5 billion as at end of 2017/18 with Health and Transport, Safety and Liaison, Roads and Public Works and CoGHSTA. • Accruals: The province had R1.4 billion in unpaid invoices at the end of 2017/18. • Unauthorised: expenditure has accumulated to R903.6 million in 2017/18, with Health and Education being the main contributors

Northern Cape: Provincial Specific Issues (2) Northern Cape: Provincial Specific Issues (2) Recommendation

• It is recommended that the Select Committee on Finance: o Notes the preliminary outcome for provincial government expenditure for the 2017/18 financial year; o Notes the overall fiscal risks pertaining to Education and Health as well as the high accruals; o Agree that capacity enhancements, better planning, and project execution skills should be sought by departments to reduce underspending on certain spending items and conditional grants.

Thank You