Chapter 2 - P rogramme 1 - Department of Defence

| Department of Defence | Vote 20 |
REPORT OF THE ACCOUNTING OFFICER
for the year ended 31 March 2008 (continued)
1.5.2 Spending trend
The DOD has again managed to achieve a relatively small under expenditure as a result of
unavoidable reasons as indicated in par 1.5 above. The expenditure for the reporting year in
comparison with the last two years is indicated below:
Financial Year 2005/2006 2006/2007 2007/2008
Vote Rm 22 670, 482 23 902, 904 26 291, 785
Expenditure Rm 22 664, 846 23 817, 584 25 180, 113
Amount surrendered Rm 5, 636 85, 320 1 111, 672
Amount surrendered as a percentage of Vote 0,02% 0,36% 4,23%
1.6 Virements. The following virements were approved during the reporting period.
1.6.1 Approved by the National Treasury
1.6.1.1 Increase in the compensation of employees by Rm85, 000.
1.6.1.2 Increase in the transfer payment relating to the transfer of the Dockyard in Simons Town to
Armscor by Rm6, 400.
1.6.1.3 Increase in the transfer payment to the Reserve Force Council to fund an operating shortfall.
1.6.2 Approved by the Accounting Officer
1.6.2.1 Increase in fund allocation for building and construction work done at the Naval Base Simons
Town.
1.6.2.2 Increase in fund allocation for consulting services, escalation in maintenance, upgrading costs and
user training on the Integrated Architecture Solution.
1.6.2.3 Increase in fund allocation for transfer payments to households, DPW devolved funds and the
Regional Services Councils.
1.6.2.4 Increase in fund allocation for various smaller departmental requirements approved by the Plenary
Defence Staff Council and allocations required for year-end.
2. Services rendered by Defence
2.1 The services rendered by the DOD are detailed in Chapter 2 of the Annual Report.
2.2 Tariff policy
DOD tariff policy consists of the following elements:
2.2.1 Tariffs instituted by law.
2.2.2 Tariffs prescribed by a national department which are applicable to all spheres of government.
223 Annual Report FY 2007 - 2008
| Financial Performance |