AUGUST 2003 DEPARTMENTAL PROGRAMMING BUDGETING EVALUATE COMMITTEE: RECOMMENDATIONS TO DSC

CONSIDERATIONS

7. Funding Shortfalls. The DPBEC accepted that shortfalls must be dealt with as follows:

  1. Additional funds from the National Treasury can only be secured in terms of Sec 30 of the PFMA if it is the consequence of unforeseeable and unavoidable expenditure. (Unforeseeable means it could not reasonably have been foreseen, whilst unavoidable means serious prejudice to the national interest.)

  2. Where expenditure cannot be classified as unforeseeable and unavoidable the MC and consequently the PDSC must direct on the necessity (priority) to incur the expenditure. In such cases budget share under one objective (BH) must be reduced and increased in another.

  3. Requirements not necessitating reallocations between objectives (BHs) must be funded from within the BH’s current allocation. Where this cannot be done, the expenditure must be delayed until sufficient funds are available, eg future years.

 

 

RECOMMENDATIONS

11.

  1. Unforeseeable and Unavoidable Items. It is recommended that the following items totalling RM 802,350 regarded as unforeseeable and unavoidable and be forwarded to NT for inclusion in the adjustments budget:

   

RM

  1. DRC: MONUC II Phase III

291,369

  • Burundi: AMIB

    • 458,031

  • DRC (Bunia): OP SUNRAY

    • 21,956

  • Liberia: OP MONTEGO

    • 16,296

  • Algeria: OP INKUNZI

    		•

    2,736

  • Local Elections

    		•

    11,962

    11.

    1. Self-Financing Allocation. It is recommended that the income amounting to RM206,230 received and paid into the National Revenue Fund be claimed from the NT.

       

    RM

    1. SDA- Sale of Defence equipment for 2002/03

    202,111

  • SAAF - Reimbursement for self-financing: Boeing 707s

    • 4,119

     

     

    1. Roll Over claim. It is recommended that RM8,270 be included as a roll-over allocation (SL2/5/19/2004 dated 3 June 2003 refers).

      2. 11

    2. Virements. It is recommended that the

    following personnel virements be included:

       

    RM

    1. Air Defence

    2. Medical Health Support

    3. Maritime Defence

    4. Joint Support (CMI)

    21,600

    39,000

    (10,000)

    15,000

     

    11.

    1. Other. It is recommended that the following miscellaneous items be included:

       

    RM

    1. 0,5% salary increase;

    22,9
  • personnel downsizing/ rightsizing; and

    		•

    24,9

  • surplus on SDP be returned to NT.

    		•

    1 400

       

     

     

    12

  • Excess to be Reutilised. It is recommended that the excess funds listed below be reutilised as follows:

    •

    Budget Holder

    		    
     

    RM

    RM

    From:

    		    

    1. Defence Reserve Forces.

    0,200

    		  

  • Chief of Acquisition for SAAF.

    		•

    1,200

    		  

  • Reserves from SDA.

    		•

    42,921

    		  

     

    To:

    		    

    1. Equal Opportunities –Improvements to provide for disabled people.

    		  

    0,200

  • SAAF – Operating of the Boeing.

    		•   

    1,200

  • Acquisition SDA- Project DOLOROSA.

    		•   

    35,000

  • SAAF SDA (Sale of spares).

    		•   

    7,171

  • Supplement to Defence Evaluation Research Agency (DERA) SDA

    		•   

    0,750

  • Transfer to ARMSCOR

    		•   

    30,000

  • SAAF – Chartering of VIP Flights. To be provided on submission of certified invoices. (Funds to be identified).
    		•  

    6,240

     

    12.

    1. Requirements to be handled as a Risk. It is recommended that the requirements listed below be handled by the BHs as a risk within their own allocation and be re-evaluated during the Nov DPBEC 03:

       

    RM

    1. CFO - consultants iro GRAP for FY 03/04.

    7,000

    12.b.

  • Anticipated increases resulting from general restructuring (eg COO, CMLS, Cpln Gen School for Chaplains and AIDS/HIV administrators, CRS, HOC, and increased missions) must be addressed in

      1. amended business plans;

      2. HR plans;

      3. cash flow projections with specific reference to the impact on the budgetary allocation; and

      4. co-signed implementation instructions

    1. prior to requesting supplements to allocations. The risks in this regard must be reported to the PDSC should they not be able to be held over until the Nov DPBEC.

     

     

    12

    1. Services Rendered. BHs have rendered services to each other and a need has arisen for the reallocation of funds.
       

    RM

    1. to proportionately fund E-Proc from beneficiary’s allocations;

    1,300

    (03/04)

  • to proportionately fund the new medal series from beneficiary’s allocations;

    		•

    1,760

  • to proportionately fund the Boulevard Hotel start-up and administration costs from beneficiary’s allocations;

    		•

    To be confirmed

  • to proportionately fund the SA Army for MSD training provided from beneficiary’s allocations; and

    		•

    32,740

  • to proportionately fund the technical and support personnel at SITA to ensure that the current administrative systems prescribed by the PFMA are sustained
    		•

    To be determined by CMI and CFO

  • SAAF in accordance with the service agreement with Log.

    		•

    0,500

    12

    1. Personnel. In respect of Personnel expenditure it is recommended that

      1. the shortfalls on item 10 must be financed from within the relevant allocation from operating expenditure. BHs must, by 31 October 2003, provide the CFO (DBC) with the serials against which the funds are available for reallocation to item 10;

      2. surpluses on the personnel budget be retained for utilisation within the relevant allocation;

      3. where it is impossible for smaller BHs to comply with sub par a to fund shortfalls the issue must be addressed to DHRPlan;

      4. the negotiated transfer for 04/05 in respect of payments for PSAP (salary levels 1-4) from FSEs to GSBs appended at A be approved to adjust the 03/04 allocations;

        5.  

      5. anticipated increases in personnel expenditure resulting from general restructuring be addressed in amended business plans, cash flow projections and implementation instructions prior to requesting supplements to allocations;

      6. beneficiaries of procurement services contribute proportionately to the (establishment and) staffing of procurement centres. CDProc to indicate the requirement subsequent to amending the HR Plan and cash flow expectations for 03/04; and

      7. the personnel budget be reassessed in November 2003.

     

    13. MTEF. In terms of the MTEF it is recommended that

     

    1. CJTrg facilitate the distribution of the quota of the 250 Youth Foundation learners within Services and Divisions;

    2. BHs provide for Youth Foundation Training in their own budgets;

    3. BHs provide funds for the training facilitated by the Service Corps. The funds must be provided to the Service Corps before the training commences;

    4. BHs provide for MSD learners at the Military Academy;

    5. BHs fund their proportion of the costs of the SANWC;

    6. CMI prepare an information strategy and business plan and present it to the DSC; and

    7. DBUD provide for carry through cost for ARMSCOR, Chartering of Aircraft and E Procure.

     

     

    14. General.

    1. It is recommended that

        1. dependent on the outcome of the adjusted budget, a bias be placed in favour of SAMHS in respect of the supplement for inflation;

        2. CMI to lead a work group attended by all his clients to address the issues presented during the DPBEC with special emphasis on funds provided from clients’ budgets, the purpose for which those funds were used and the proposed direction to fund the in year requirements stated by clients. The outcome of the meeting must be presented to the DSC for approval.

       

       

    2. The PDSC to note

        1. that revenue realised can only be claimed once a year in the adjustments budget process;

        2. that BHs must budget for anticipated revenue;

        3. the Service Agreements between the BHs and CMI must be finalised to ensure ratification of the total Defence requirement for CMI systems and services:

        4. that CDHRSC must investigate the excess numbers recruited for Youth Foundation Training and the responsible Division must carry the cost; and

        5. that all donations in cash or kind must be reflected in the financial statements.