111 HIGH LEVEL OVERVIEW WATER SECTOR FINANCIAL PERFORMANCE APRIL - DECEMBER 2010 Masibambane Coordinating Committee Meeting.

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HIGH LEVEL OVERVIEW

WATER SECTOR FINANCIAL PERFORMANCE

APRIL - DECEMBER 2010

Masibambane Coordinating Committee Meeting

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Contents

o Overview of Water Sector Expenditure as at 31 December 2010

o Progress on Donor Funding

o Detailed expenditure analysis per quadrant

o Donor Budget and Expenditure 31 December 2010

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WATER SECTOR 2010/11 FINANCIAL SUMMARY: 31 DECEMBER 2010

Budget Actual %

Donor Projects R0, 217b R0,050b 23

Prog 4 & 5 R4,463b R2,559b 57

Budget * Actual %

Capital R5,638b R1,987b 35

Recurrent R10,559b R7,919b 75

1

3 4

2

Quadrant 4Non DWANon WS specific

Quadrant 3DWA

WR specific

Quadrant 2Non DWA

WS specific

Quadrant 1DWA

WS specific

Budget Actual %

Prog 2 R0,494b R0,259b 52

Prog 3 R2,238b R1,726b 77

Budget Actual %

Recurrent R0,058b R0,016b

28

Total Q2Bud= R16.2bExp= R9.97b

Total Q1Bud= R4.5bExp= R2.6b

Total Q3Bud= R2.2bExp= R2.0b

Total Q4Bud= R0.058b

Exp = R0,016b

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PROGRESS ON DONOR FUNDING CASHFLOW The department has received R200m for 2010/2011 as an

exit strategy on Masibambane III. The funding from the European Union has been

received in full in the first quarter of 2010/2011 of which R134m relating to 2009/2010 deficit was set off.

Still awaiting the tranche from the Irish Aid for 2010/2011 amounting to €1.5m.

The slow spending of donor funds (23%) can be attributed to the delay in the budget approval because the funds were received in quarter 1 which influenced the planning and execution of projects. DWA took a conservative approach to avoid qualifications, i.e. no approval of budget prior to actual funds received.

PROGRESS ON DONOR FUNDING CASHFLOW

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Overview of Expenditure Performance April 2010 to December 2010

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QUADRANT VIEW OF WATER SECTOR BUDGET & EXPENDITURE TO DECEMBER 2010

Quadrant 1: DWA Water Services Specific         Quadrant 2: Non-DWA - Water Services Specific            2010/2011   2010/2011  Budget Expend. %

Expenditure  Budget Expen WS Budget WS Expend. % WS

Expenditure  R'000 R' 000   R'000 R'000 R' 000 R' 000

    - Municipal Infrastructure Grant (MIG) (45%) 12,528,889 4,416,150 5,638,000 1,987,268 35%- Donor Funding (EU, Irish Aid) 217,000 50,000 23%    

> EU (Contract signature - Sep 07) 195,873 43,284 22%    

> Irish Aid 20,933

6,512 31%      

       - Equitable Share (35%) 30,167,707 22,625,780 10,558,697 7,919,022 75%                    

Programme 4 - Regional Management 4,348,819 2,481,073 57%    

Stakeholder Management / Sector Support 580,733 348,934 60%    

Institutional Establishment 499,127 141,662 28%    

Regional Programme Coordination 619 - 0%    Water Conservation And Demand Management 57,341 28,871 50%    

Accelerate Access To Community Infrastructure

103,556 44,966 43%    

Natural Resource Management Programmes 912,196 522,895 57%    

Poverty Interventions 124,542 51,644 41%    

Regional Bulk 893,000 409,541 46%    

Transfers Of Water Schemes 875,560 751,054 86%    

Support Services 302,146 181,508 60%              

Programme 5 - Water Sector Regulation 114,475 78,348 68%    

Economic & Social Regulation 15,131 12,789 85%    

Resource Regulation 43,554 44,120 101%    

Water Use 41,984 15587 37%    

Enforcement 13,806 5,852 42%                      Grand Total 4,463,297 2,559,421 57% Total 42,696,596 27,041,930 16,196,698 9,906,290 61%                      Quadrant 3: DWA Water Resources       Quadrant 4: Non-DWA - Non-Water Services Specific  2010/2011   2010/11  Budget Expend. %

Expenditure  Budget Expen WS Budget WS Expend. % WS

Expenditure  R' 000 R' 000   R' 000 R'000 R' 000 R' 000                     

Programme 2 - Water Management 493,502 258,536 52%    

Integrated Planning 127,600 68,692 54%    

Policy and Strategy 11,634 10,314 89%    

Institutional Oversight 92,052 44,775 49%

Water Eco Systems 29,805 17,594 59%    

Water Information Management 59,418 26,873 45%           Programme 3 - National Water Resource Infrastructure 2,238,232 1,725,961 77%  

Infrastructure Development and Rehabilitation 2,098,211 1,620,944 77% - Local Government Financial Management Grant (10%) 364,589 137,848 36,459 13,788  38%

Operation of Water Resources 140,021

105,021 75%

- Municipal Systems Infrastructure Grant (10%) 212,000  23,320 21,200  2,332  11%           

Grand Total 2,731,744 1,984,497 73% Total 576,589  161,168 57,659  16,120  28%                     

  Expenditure received from National Treasury

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QUADRANT 1: DONOR FUNDS EXPENDITURE PER PROVINCE

REGION

EXP TO DECEMBER 31/12/2010

BUDGET 2010/11

EXP TO BUDGET

Sector Partners (SALGA, DCGTA, CBOs, DoH, Regional Offices, Municipalities, etc)

28,950,577 89,175,433 32%

Eastern Cape4,623,020 8,116,977 57%

Free State1,686,258  9,708,925 17%

Gauteng6,632,093 13,015,096 51%

KwaZulu Natal0  11,080,177 0%

Limpopo6,511,850 31,000,507 21%

Mpumalanga0  11,282,951 0%

Northern Cape1,051,606 14,074,191 7%

North West0  13,270,074 0%

Western Cape340,429  16,083,011 2%

Total 49,795,833 216,807,375 23%

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QUADRANT 1: PROGRAMME 4: REGIONAL MANAGEMENT BY

SUB-PROGRAMME

Sub-Programmes

Expenditure Year to

31-12-2010

Budget Variance Exp Ytdvs

Budget

Stakeholder Management / Sector Support348,934 580,733 231,799 60%

Institutional Establishment 141,662 499,127357,465 28%

Regional Programme Coordination 0 619619 0%

Water Conservation And Demand Management 28,871 57,34128,470 50%

Accelerate Access To Community Infrastructure 44,966 103,55658,590 43%

Natural Resource Management Programmes 522,895 912,196389,301 57%

Poverty Interventions 51,644 124,54272,898 41%

Regional Bulk 409,541 893,000483,459 46%

Transfers Of Water Schemes 751,054 875,560124,506 86%

Support Services 181,508 302,146 120,638 60%

Total Sub-Programmes 2,481,073 4,348,819 1,867,746 57%

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QUADRANT 1: PROGRAMME 4: REGIONAL MANAGEMENT BY

REGION

Regional

Expenditure Year to

31-12-2010

Budget Variance Expvs

Budget

Eastern Cape 370,371 598,382 227,651 62%

Western Cape 266,524 432,500 165,976 62%

Kwazulu Natal 157,982 321,038 163,056 49%

Mpumalanga 203,574 363,300 159,726 56%

Gauteng 107,859 200,063 92,203 54%

North West 91,034 191,927 100,892 47%

Free State 102,901 216,225 113,324 48%

Northern Cape 140,598 194,551 53,953 72%

Limpopo 723,678 1,020,448 296,771 71%

Regional Coordination 18,370 34,573 74,874 53%

Manager National Transfer 10,549 16,883 6,334 62%

Regional Bulk Unit (HO) & WS Projects 7,909 262,333 254,424 3%

Working For Water & Fire 241,585 437,928 196,342 55%

Other (CME, DWMIG & WARMS) 37,780 58,671 20,891 64%

Total 2,481,073 4,348,819 1,867,746 57%

101010

QUADRANT 1: PROGRAMME 5: WATER SECTOR REGULATION

Sub-Programmes

Expenditure Year to

31-12-2010

Budget Variance Exp Ytdvs

Budget

Economic & Social Regulation 12,789,000 15,131,000 2,342,000 85%

Resource Regulation 44,120,000 43,554,000 566,000 101%

Water Use15,587,000 41,984,000 26,397,000 37%

Enforcement5,852,000 13,806,000 7,954,000 42%

Total Sub-Programmes

78,348,000

114,475,000

36,127,000 68%

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QUADRANT 3: PROGRAMME 2: WATER MANAGEMENT

Sub-Programmes

Expenditure Year to

31-12-2010

Budget Variance Exp Ytdvs

Budget

Integrated Planning68,692,000 127,600,000 58,908,000 54%

Policy and Strategy10,314,000 11,634,000 1,320,000 89%

Institutional Oversight44,775,000 92,052,000 47,277,000 49%

Water Eco Systems17,594,000 29,805,000 12,211,000 59%

Water Services26,873,000 59,418,000 32,545,000 45%

Water Information Management90,288,000 172,993,000 82,705 52%

Total Sub-Programmes

258,536,000 493,502,000 234,966,000 52%

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QUADRANT 3: PROGRAMME 3: NATIONAL WATER RESOURCES INFRASTRUCTURE

Sub-Programmes

Expenditure Year to

31-12-2010(R'000)

Budget(R'000)

Variance Exp Ytdvs

Budget

Infrastructure Development and Rehabilitation1,620,944 2,098,211 477,267 77%

Operation of Water Resources 105,017 140,02135,004

75%

Total Sub-Programmes 1,725,961 2,238,232 512,271 77%

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QUADRANT 4: EXPENDITURE ANALYSISNON-DWAF, “NON WATER SECTOR” (CAPACITY BUILDING

GRANTS)

Quadrant 4: Non-DWA - Non-Water Services Specific

  2010/2011

  Budget Expen WS Budget WS Expend.% WS Expenditure  R' 000 R'000 R' 000 R' 000

  - Local Government Financial Management Grant (10%)

364,589 137,848

36,459

13,788  38%

- Municipal Systems Infrastructure Grant (10%)

212,000 23,320 

21,200  2,332  11%

Total 576,589 161,168  57,659 16,120   28%

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Thank you

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