Co-managed departments register success
Departments that are currently under Provincial Treasury co-management are the main beneficiaries from the North West Adjustment Budget. The provincial budget has been adjusted upwards by R658,226 million.
Three social cluster departments namely; Education and Sport Development, Health, and Public Works and Roads that have been placed under the co-management by the Executive Council received a total amount of R217.269 million. The three takes about seventy three per cent of the provincial budget.
“The budget for Department of Health is adjusted upwards by R179.634 million, which includes the rollover amount of R18.512 million in respect of the Health Facility Revitalization and National Health Insurance Grants. From that addition, an amount of R160.684 million is set aside to address the Improvement in Conditions of Service (ICS) and other budget pressures on Goods and Services,” Nelson told the legislature.
The department also received a donation towards the training of two emergency medicine registrars for a period of 4 years from Netcare Foundation NPC. An amount of R438 thousand will be spent in the current financial year.
Regarding department of Education and Sport Development, Nelson indicated that the department receives an additional amount of R187.538 million which increased the budget to R13.620 billion.
This includes rollovers of R116.718 million mainly attributed to the Education Infrastructure Grant of R96.516 million. An amount of R70 million is allocated to assist the department with the implementation of the Improvement in Condition of Service (ICS) while the department received R820 thousand as a donation from the Japanese Embassy.
The department of Public Works and Roads baseline has been reprioritised in favour of roads projects. The allocation is mainly intended to deal with the pressures on roads upgrades and rehabilitation
“We will continue to provide support and work closely with these departments with the view to ensure sound financial management in the province,” said MEC Nelson.
Nelson said positive progress recorded to date relates to the reduction of accruals from previous financial year.
“Over the past few years, there has been an increasing trend of accruals in the province. This trend comes as a result of departments not adhering to the prescript of paying service providers within 30 days. Following the commitment by the Premier to pay suppliers within 30 days, a significant improvement was realized regarding payment of suppliers within 30 days. Departments are therefore encouraged to manage orders and ensure payments within 30 days, which will ensure that only invoices and orders generated in March 2016 are payable or accrued to April 2016.”
“Public Works and Roads opened the financial year with accruals amounting to R330 million from the 2014/15 financial year of which R260 million related to the road sector. As at the end of September 2015 all accruals from the previous financial year were paid,” said MEC Nelson.
She said through the co-management programme excess educators have been managed down from 925 to 373 and the turnaround time of paying educators has improved.
Enquiries:
Kesalopa Gill
Cell: 018 388 3584, 079 548 6352 or 018 388 3584.
Email: kgill@nwpg.gov.za
