Office of the Premier Annual Report 2009-2010 - Gauteng Online

- Breakdown of under/over spending under Programmes:Programme 1 under spent the appropriated budget with a net of 0.59% or R324 000 which is considered to be immaterial.Programme 2 under spent the appropriated budget with a net 5.35% or R3.699 million mainly in Current Expenditure with4.07% or R2.690 million while under spending in Capital with 34.2% or R1.009 million.Programme 3 under spent the appropriated budget with a net 0.57% or R530 000 which is considered to be immaterial.Detail per programme is provided in the Appropriation Statement and the Notes to the Appropriation Statement.Graph 3: Per Economic Classification- Reasons for under/over spending under Economic Classification:The under spending in current expenditure mainly relates to Goods and Services under Programme 2 in respect of accrualsand commitments at year end while an over spending incurred under Compensation mainly in respect of three HODstransferred to the Office of the Premier without funds.The under spending in Capital Assets classification mainly incurred in respect of projects under Programme 1 in respect ofthe upgrading of the e-cabinet and Programme 2 the upgrading of LAN, in progress.In terms par 43 (4)(C) of the PFMA, savings under capital may not be utilized (after the Adjustment Budget) to defray currentexpenditure.Detail per economic classification is provided in the Appropriation Statement and the Notes to the Appropriation Statement.- Discuss the impact on programmes and service deliveryThe under spending did not impact negatively on service delivery in 2009/10, however the outstanding accruals andcommitments included under the notes to the Annual Financial Statements will have an impact on 2010/11 budget allocation.84