AIM

11

PRESENTATION TO THE PORTFOLIO COMMITTEE ON

DEFENCE AND MILITARY VETERANS

DEPARTMENT OF DEFENCE:

2nd QUARTER FINANCIAL PERFORMANCE:

FINANCIAL YEAR 2012/13

PCD 2nd QR 2012 Fin Perf

22

AIM

To inform the Portfolio Committee on Defence and Military Veterans on Defence’s 2nd

quarter financial performance for the 2012/13 financial year.


SCOPE• Adjusted Estimates of Defence’s Expenditure FY2012/13• FY2012 Financial Performance

– 2nd Quarter expenditure per programme– 2nd Quarter expenditure per SCoA– 2nd Quarter revenue collection– Cash flow as at 30 September 2012– Special Defence Account

• Discussion

3PCD 2nd QR 2012 Fin Perf


55

ADJUSTED ESTIMATES OF NATIONAL EXPENDITURE (AENE): FY 2012


SerNo

Item Requested Received Deviation

a b c d RM RM RM

1. Unforeseeable and Unavoidable 173,5 63,0 (110,5) i. OP COPPER 125,9 63,0 (62,9) ii. OP PHEFO 47,6 0 (47,6)2. Self-Financing 203,2 142,1 (61,1) i. SDA 142,1 142,1 0 ii. GDA 61,1 0 (61,1)3. Unforeseeable Economic Events –

Salary Increase Additional 347,9 190,2 (157,7)

4. Total Adjustments 724,6 395,3 (329,3)

66

FY 2012/13: AENE PER PROGRAMME


Programme 2012/13 Total Main Unforeseeable/ Virements Other adjustments Adjusted

R thousand appropriation unavoidable and shifts adjustments appropriation appropriation

1. Administration 3 730 776 80 012 9 866 89 878 3 820 654 2. Force Employment 2 670 902 63 000 2 594 11 699 77 293 2 748 195 3. Landward Defence 12 686 731 (511 808) 138 820 (372 988) 12 313 743 4. Air Defence 6 749 665 332 185 36 870 369 055 7 118 720 5. Maritime Defence 2 551 307 296 790 14 155 310 945 2 862 252 6. Military Health Support 3 316 507 156 585 23 362 179 947 3 496 454 7. Defence Intelligence 709 663 (50) 2 534 2 484 712 147 8. General Support 5 077 403 (356 308) 95 282 (261 026) 4 816 377

Total 37 492 954 63 000 0 332 588 395 588 37 888 542

77

FY 2012/13: AENE PER SCOA


Economic classification

2012/13

Total Main Unforeseeable/ Virements Other adjustments Adjusted

R thousand appropriation unavoidable and shifts adjustments appropriation appropriation Current payments 30 156 953 63 000 620 952 190 292 874 244 31 031 197 Compensation of

employees 18 967 786 8 427 179 558 190 292 378 277 19 346 063

Goods and services 11 189 167

54 573 441 394 495 967 11 685 134

Transfers and subsidies

6 376 133 (439 531) 142 296 (297 235) 6 078 898

Departmental agencies and accounts

5 327 877 (504 040) 142 296 (361 744) 4 966 133

Public corporations 914 753 60 179 60 179 974 932 Non-profit

institutions 6 213 6 213

Households 127 290 4 330 4 330 131 620 Payments for

capital assets 622 164 8 185 8 185 630 349

Buildings and other fixed structures

111 110 111 110

Machinery and equipment

460 459 8 185 8 185 468 644

Specialised Military Assets

49 546 49 546

Software and other intangible assets

1 049 1 049

Payments for

financial assets 337 704 (189 606) (189 606) 148 098

Total 37 492 954 63 000 332 588 395 588 37 888 542


99

FY 2012/13: SECOND QUARTER EXPENDITURE COMPARISON PER PROGRAMME


Programme 2011/12 2012/13Expenditure outcome Preliminary expenditure

Apr 11 - Sep 11 Apr 12 - Sep 12Adjusted Apr 11 - % of adjusted Adjusted Apr 12 - % of adjusted

RM appropriation Sep 11 appropriation appropriation Sep 12 appropriationAdministration 3 718.4 1 847.9 49.6 3 820.6 1 764.2 46.1 Force Employment 2 332.0 1 009.5 43.2 2 748.2 1 190.3 43.3 Landward Defence 11 328.6 5 085.9 44.8 12 313.7 5 371.3 43.6 Air Defence 6 355.8 2 943.1 46.3 7 118.7 2 767.5 38.8 Maritime Defence 2 564.7 1 185.4 46.2 2 862.3 1 231.2 43.0 Military Health Support 3 244.3 1 481.4 45.7 3 496.5 1 574.3 45.0 Defence Intelligence 661.6 451.3 68.2 712.1 400.4 56.2 General Support 4 143.7 1 766.2 42.6 4 816.4 1 796.6 37.3 Total 34 349.1 15 770.7 45.9 37 888.5 16 095.6 42.4

1010

FY 2012/13: SECOND QUARTER EXPENDITURE COMPARISON PER SCOA


Expenditure 2011/12 and preliminary expenditure 2012/13Programme 2011/12 2012/13

Expenditure outcome Preliminary expenditureApr 11 - Sep 11 Apr 12 - Sep 12

Adjusted Apr 11 - % of adjusted Adjusted Apr 12 - % of adjustedRM appropriation Sep 11 appropriation appropriation Sep 12 appropriationCurrent paymentsCompensation of employees 17 555.3 8 287.4 47.2 19 346.1 9 183.7 47.4 Goods and services 10 535.4 4 071.6 38.6 11 685.1 3 932.7 33.6 Total current payments 28 090.7 12 359.0 43.9 31 031.2 13 116.4 42.2 Transfers and subsidies to:Departmental agencies and accounts

4 878.3 2 548.7 52.2 4 966.2 2 058.6 41.5

Public corporations and private enterprises

867.3 625.0 72.1 974.9 486.5 49.9

Non-profit institutions 6.3 4.0 63.5 6.1 4.7 77.0 Households 155.4 55.2 35.5 131.6 62.5 47.5 Total transfers and subsidies 5 907.3 3 232.9 54.7 6 078.8 2 612.3 42.9 Payments for capital assetsBuildings and other fixed structures 126.5 87 68.4 111.1 134.2 120.8 Machinery and equipment 203.5 60 29.3 468.6 106.3 22.7 Specialised military assets 20.7 17 80.7 49.6 6.6 13.3 Software and other intangible assets 0.4 – – 1.1 – – Total payments for capital assets 351.1 162.9 46.4 630.4 247.1 39.2 Payments for financial assets – 15.9 – 148.1 119.8 80.9

Total payments 34 349.1 15 770.7 45.9 37 888.5 16 095.6 42.4

1111

FY 2012/13: 2nd QUARTER REVENUE COMPARISON PER SCOA ITEM


2011/12 2012/13Audited outcome 1

Adjusted Apr 11 – Sep 11 Adjusted Apr 12 – Sep 12 RM estimate Apr 11 – Sep 11 % of adjusted estimate estimate Apr 12 – Sep 12% of adjusted estimate

Sales of goods and services other than capital assets

282.4 154 54.6 301.8 146.7 48.6

Transfers received 172.0 86.9 50.5 280.3 280.3 100.0 Fines, penalties and forfeits 11.8 5.8 49.2 13.0 6.7 51.5 Interest, dividends and rent on land 2.6 1.0 38.5 36.9 35.5 96.2 Sales of capital assets 28.5 – – 79.5 61.5 77.4 Financial transactions in assets and liabilities 66.0 11.9 18.0 218.0 46.6 21.4 TOTAL RECEIPTS 563.3 259.9 46.1 929.5 577.3 62.1

1212

CASH FLOW POSITION AS AT 30 SEPTEMBER 2012

SN Description RM a b

1 Accumulated Cash flow 16 501,3

2 Balance previous month (31 Aug 2012) 390,5

3 Actual Drawing (Sep 2012) 2 946

4 Actual Spending (paid during Sep 2012) 2 931

5 Balance (Cumulative) 405,7

6 % Month not spent 0,5

7 % Cumulative not spent 2,5


1313

FY 2012/13: SPECIAL DEFENCE ACCOUNT


1414

Thank You

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