Free State Department of Sport,
Arts and Culture
Presentation to SCOF on Conditional
Grants and Capital Expenditure
2 September 2009
1
CONTENT
•
•
•
•
•
•
•
Conditional Grants received by the Department
Library Services
Sport and Recreation
Infrastructure
General Analysis of Trends
Plan to Address Shortcomings
Assessment of Department Monitoring Capacity
2
CONDITIONAL GRANTS RECEIVED BY
DEPARTMENT
Library
Services
Siyadlala
Legacy
R’000
R’000
R’000
R’000
R’000
40 315
7 209
12 307
7 075
74 740
School Sport Infrastructure
3
Library Services
Quarter 1
Transfers (13% of total budget)
5 335
Spending
3 769
Balance
1 566
•
Notes
– R710 000 has been committed for the procurement of library materials
– The business plan was drafted to such that Q1 would used to finalize contracts and issue
orders and that delivery of equipment such as computers, photocopiers, security systems
would then take place in Q2 and Q3.
– The cash flow projection for the business plan thus provided for 13 % of the grant to be spent
by end of June, but this was not achieved due to the following challenges:
• 3 year contracts were processed for ICT resources, photocopiers, and library materials
but put on hold due to a higher decision that, as an interim measure, one-year contracts
must be arranged.
• Posts yet to be filled
4
Quarterly analysis of Library Services Conditional Grant
spending
Total Budget
Quarter 1
Compensation of employees
14 182
2 169
15 %
Goods and Services
18 241
1 233
7%
Printing & Publications
4 500
574
13 %
Newspapers & Magazines
1 075
-
0%
Equipment <R5 000: Computer & other equipment
4 738
9
0%
SITA: Computer expenses
6 072
460
8%
Other expenses: Travelling, maintenance, etc.
1 856
190
10 %
552
-
0%
Capital payments
7 340
367
5%
Philippolis Library
3 765
367
10 %
415
-
0%
Office equipment & furniture
1 140
-
0%
Security equipment
2 020
-
0%
40 315
3 769
9%
Transfers and subsidies
Computer equipment
TOTAL
5
Notes on Library Services Expenditure
trends
• Appointment of employees
– Target: 52 additional staff to be appointed in public libraries
– 1st quarter – planning and recruitment
– Recruitment delayed due to cost containment measures within
the province
• Printing and Publications
– Target: 50 000 items of library material bought
– Book orders to the value of R867 000 not delivered in time for
payment
• Newspapers and publications
– Renewal of subscriptions is done during October-December
• Computer datalines and maintenance
- Invoices for computer datalines and maintenance of photocopiers
not received in time for payment before 30 June 2009: R906 5106
Notes on Library Services Expenditure
trends (cont)
• Philippolis Library
– Department of Public Works, Roads and Transport busy
arranging a new contract after previous contractor defaulted.
Challenge is to identify local contractors
• Machinery and equipment
3 year contracts were processed for ICT resources, photocopiers,
and library materials but put on hold due to a higher decision that,
as an interim measure, one-year contracts must be arranged.
• Number of Libraries served by Conditional Grant
– Library collections upgraded: 20 libraries
– ICT Infrastructure: 59 libraries
– Photocopiers: 30 libraries
– Additional staff: 50 libraries
– Infrastructure: Renovations, security: 10 libraries
7
Notes on Library Services Expenditure
trends (cont)
• Infrastructure
– Upgrade Philippolis Library
• Department of Public Works, Roads and Transport
busy arranging new sub-contractors
• Challenge – to find local contractors
– Upgrade security at 10 libraries
• Delays with arranging contracts because of new
policy directives on handling infrastructure contracts
– Provide 59 libraries with ICT infrastructure
• Procurement delayed due to directive to arrange 3
year contract and not to use SITA contracts
8
Notes on Library Services Expenditure
trends (cont)
• Providing equipment to libraries
– Provide 31 libraries with photocopiers
• Adjudication of bids to be completed
• Provincial capacity expanded
– 7 staff members appointed within Department
• Recruitment delayed due to cost containment
measures within the province
• Cooperation with municipalities
– Sign MoUs with municipalities
– Busy with negotiations with municipalities
9
CONDITIONAL GRANTS SPORT AND
RECREATION
Conditional Grant: Sport and Recreation South Africa
Quarter 1
Transfers
7 023
Spending
2 753
Balance
4 270
Siyadlala
Budget
Expenditure
Balance
Legacy
School Sport
Total
7 209
12 307
7 075
26 591
720
1 262
771
2 753
6 489
11 045
6 304
23 838
10
Quarterly analysis of Sport and Recreation Conditional
Grant spending
Total Budget
Quarter 1
SIYADLALA
7 209
720
10 %
Compensation of employees
2 514
405
16 %
Goods and Services
3 195
315
10 %
Capital Payments
1 500
-
0%
12 307
1 262
10 %
1 263
103
8%
10 044
1 159
12 %
Capital Payments
1 000
-
0%
SCHOOL SPORT
7 075
771
11 %
Compensation of employees
2 538
690
27 %
Goods and Services
3 337
81
2%
Capital Payments
1 200
-
0%
26 591
2 753
10 %
LEGACY
Compensation of employees
Goods and Services
TOTAL
11
Notes on Sport and Recreation Grants
• 3 year contracts for event management and attire to be
approved during September.
• Due to processes being followed by the province on
acquiring three year contracts for services envisaged, the
following have not been achieved:
–
–
–
–
Appointment of school sport assistants and cluster coordinators.
Appointment of activity and hub coordinators.
Appointment of code coordinators.
Procurement of attire and equipment
• Several goods and services acquired for mobilisation
activities and public viewings areas during the Confed Cup
2009 in June and paid after 30 June
12
Notes on Sport and Recreation Grants
(cont)
• Major outputs of the Conditional Grant:
– Siyadlala
Dates
Activities
17 April 2009
Hub festival held in Reddersburg and
approximately 200 participants attended.
18 April 2009
Elderly event was held in Heilbronn and
approximately 250 participants attended.
08 May
Wellness ± 400 participants
27 June
Thaba-nchu, Indigenous games district
selection
13
Notes on Sport and Recreation Grants
(cont)
• Major outputs of the Conditional Grant:
– Club Development
Dates
Activities
27 April – 02 May

30 May 2009


31 May 2009




Supported Volleyball Free State in
Hosting National Volleyball Club
Championship
Road-show: 2009 Confederations Cup
and 2010 World Cup Mass Mobilization
Event held throughout Maluti-a-Phofung
Municipality in QwaQwa.
200 u/14 football boys bussed to
participate in mock-world cup trial guided
by the Free State Legends.
+ 1500 Spectators in attendance.
Road-show: 2009 Confederations Cup
and 2010 World Cup Mass Mobilization
Event held throughout Matjhabeng
Municipality (Odendaalsrus via Welkom).
200 u/14 football boys bussed to
participate in mock-world cup trial guided
by the Free State Legends.
+ 6000 spectators in attendance.
14
Notes on Sport and Recreation
Grants (cont)
• Club Development (cont)
Dates
Activities
17 June 2009

Procured tickets for spectators to watch
game were issued: Brazil v/s Iraq
20 June 2009

Procured tickets for spectators to watch
game were issued: Bafana Bafana v/s
Spain.
Transported 42 Xhariep District
coordinators to the game.

24 June 2009



24 June 2009
Greening the Nation Project launched at
Lochlogan in partnership with the
Department of Environment and Tourism.
Indigenous trees were planted.
50+ people in attendance.
Procured tickets for spectators to watch semifinal game were issued: Spain v/s USA
15
Notes on Sport and Recreation
Grants (cont)
• Club Development (cont)
Dates
Activities
28 June 2009

PVA pitched in Maluti-a-Phofung
(Charles Mopedi Stadium) drew +-3000
spectators
28 June 2009

PVA pitched in Matjhabeng Municipality
(Phakisa) drew +-5000 spectators
16
Notes on Sport and Recreation Grants
(cont)
• Major outputs of the Conditional Grant:
– School Sport
Dates
Activities
14 -17 May 2009

01 June – 05 June 2009

15 June 2009

90 Farm school learners and 10
educators from Lejweleputswa, Motheo
and Fezile Dabi were afforded an
opportunity to attended the
Confederation game in Bloemfontein
17 & 24 June 2009

139 Cluster coordinators and sport
assistants attended the FIFA
Confederation game in Bloemfontein.
Three Free State schools namely:
Thababg, Viljoenskoon and Heidedal
participated in schools FIFA 2009
Confederations Cup tournament in
Johannesburg Marks Park
Visit by students from Hampshire London
University for the British Linkage
Programme
17
Infrastructure (Capital expenditure)
Total Budget
Expenditure
74 740
Quarter 1
12 474
17 %
• Notes
– SLA’s with 2 major municipalities just finalized (R64
million and R11.47 million). Transfer payments effected
for R64 million during September.
– 2 Projects (Basotho Cultural Village and Philippolis)
cancelled during previous year, now back on tender.
18
Infrastructure (Capital expenditure)
Capital projects
Budget
Payments
Qwaqwa Basotho
Cultural Village
4 490
757
Fezile Dabi High
Performance Satellite
2 345
Fezile Dabi Local
Talent Development
Centre
Edenville Library
Balance
%
payments
Remarks
3 733
17 %
On track.
-
2 345
-
Memorandum of Agreement between Department
and Fezile Dabi District Municipality yet to be
signed.
2 345
-
2 345
-
Memorandum of Agreement between Department
and Fezile Dabi District Municipality yet to be
signed.
7 700
-
7 700
-
Contract on track. Payment will pick up during
2nd quarter.
Bloemfontein Sport
Museum
12 000
-
12 000
-
Contractor yet in process of being appointed.
Fezile Dabi Stadium
61 880
11 000
22 000
33 %
11 757
50 123
19 %
New constructions
TOTAL
Payment on track.
19
Infrastructure (Capital expenditure)
Capital projects
Budget
Payments
Balance
%
payments
Remarks
Rehabilitation / upgrading
NALN Museum
1 000
-
1 000
-
Under retention
Philippolis Museum
1 840
-
1 840
-
Sub-contractors appointed to assist contractor.
700
-
700
-
Contractor appointed 7/09
Craft Emporium
1 500
-
1 500
-
In planning stage
Military Museum
300
-
300
-
In planning stage
FSSSI Facilities
2 499
-
2499
-
Contractor in process of being appointed
500
120
380
24 %
On track
1 000
267
733
27 %
On track
500
200
300
40 %
On track
9 839
587
9 252
6%
Presidency Museum
Zamdela Arts & Culture
Centre
Philippolis Library
Mangaung Sport Stadium
TOTAL
20
Infrastructure (Capital expenditure)
No significant risks of underspending identified at this stage.
21
Infrastructure (Capital expenditure) (cont)
• Challenges during 2009/10:
– Contractors to be appointed for Museums so that the
cash can flow
– Sub-contractors appointed to assist main contractor at
Philippolis Library
22
Infrastructure Project Progress
Project Name
Baseline
Actual start and
expected end date
Physical
progres
s
Start
End
Start
End
%
Free State Sport
Museum
1 April 08
31 Mar 10
1 April 08
31 Mar 10
1%
Qwaqwa BCV
1 Sept 05
1 Oct 06
1 April 08
31 Mar 10
40 %
Afrikaans Literary
Museum
1 April 02
31 Aug 08
15 Nov 05
Dec 08
80 %
Philippolis Museum
1 April 08
31 Mar 09
1 April 08
31 Mar 10
0%
1 April 09
31 Aug 09
50 %
Zamdela Arts and
Culture Centre
23
Infrastructure Project Progress
Project Name
Baseline
Actual start and
expected end date
Physical
progres
s
Start
End
Start
End
%
Philippolis Library
1 Jan 07
30 Sept 08
1 March 09
31 March 10
5%
FSSSI Rehabilitation
Unit
1 May 05
1 July 06
1 April 09
31 March 09
99 %
Fezile Dabi Stadium
1 April 08
31 Mar 11
1 April 08
31 March 10
0%
Fezile Dabi HPC &
LDC Satellite
1 April 09
31 Mar 10
Planning
31 March 10
5%
24
Challenges with Infrastructure Projects
Project
Reasons for Underperformance Remedial Action
CULTURAL AFFAIRS
Free State Sport Museum
Construction not commenced
To fast-track bidding process
Phillippolis Museum
Inadequate performance by
contractor
Sub-contractors appointed to
assist the main contractor.
25
Challenges with Infrastructure Projects
Project
Reasons for Underperformance Remedial Action
SPORT AND RECREATION
FSSSI facilities
Construction not commenced
To fast-track bidding process
Fezile Dabi Stadium
Shortfall of R30 m on contract
Municipality to source
additional funding
26
General
Analysis
oftrends
Trends
General
analysis of
• Infrastructure spending is picking up during August
2009 and is expected to keep momentum during
September 2009
• Library grants transferred from National Treasury in
accordance with cash flow plans
• Sport and Recreation grants transferred from
National Treasury in accordance with cash flow
plan
27
General
analysis
of trends
General
Analysis
of Trends
(cont)
• Challenges:
– Approval of business plans just before commencement of
new financial year
– Delays in recruitment process (advertising), over which
the programmes have not direct control
– Not all of contract workers in place by 1 April 2009 but to
be appointed during 2nd quarter
– One-year contracts awarded during 1st quarter for major
suppliers, to be delivered during 2nd and 3rd quarter.
28
General
analysis
of trends
General
Analysis
of Trends
(cont)
• Remedial measures:
– Approval to amend business plan to redirect
under-expenditure on compensation budget to
other projects
29
Plans to Address Shortcomings
• For 2009/10
– Recruitment process to be fast-tracked
– 1-year contracts, to be monitored for performance
• As from 2010/11
– Proper planning before 1 April, especially with regard
to:
• Number of coordinators and contract workers required to be
recruited by 1 April
• Need analysis for goods and services contracts to be in place by
1 April
• Events calendar so that public funds can be properly committed,
prior to events
• Suppliers registered on system for timely payments
30
Assessment of Department’s Monitoring
Capacity
• Financial Control Committee meeting under chairpersonship of Head
of Department
• Executive Manager: Sport and Recreation and Senior Manager:
Recreation supported by 2 Managers
• Executive Manager: Cultural Affairs and Library Services and Senior
Manager: Library and Archive Services, supported by 2 Managers (to
be filled 1 October 2009)
• Expenditure trend-tracking overview by Chief Financial Officer
• Finance, Supply Chain Management and Human Resources clerks
appointed out of grants to focus on grant commitments
• Reporting system:
– Quarterly reports to National Department (and National Treasury via
Provincial Treasury) with comments on variances
– Monthly IYM reports, with comments on variances
31
THANK YOU
32