Report of the Select Committee on Appropriations on the third quarter spending patterns on the Community Library Services Grant for the 2010/11 financial year, dated 22 June 2011

1. Introduction

The Select Committee on Appropriations (the Committee) invited six provincial departments of Arts and Culture, who under-spent on the Community Library Services Grant, to come and make a presentation on their third quarter spending in the 2010/11 financial year. The statistics on spending patterns were published by National Treasury in March 2010.

The meeting took place on 25 May 2011 and was held in Committee Room E249 in Parliament, Cape Town.

2. Terms of reference

The public hearings formed part of the Committee’s ongoing interaction with provinces to monitor their spending patterns on conditional grants allocated to them. A framework for the grant sets out the purpose of the grant, measurable objectives, conditions, allocation criteria, and past performance among other things.

Provinces were requested to make an oral presentation on the Community Library Services Grant and to take into consideration the following:

• Data trends in allocations, transfers and actual expenditure of conditional grants of the department;
• Assessment of department’s monitoring capacity for the 2010/11 financial year and indicate under-spending and what capacity constraints that impacted on these outcomes;
• Report whether monthly reports are received from receiving departments or municipalities, and if not, what the departments are doing in order to ensure compliance with monthly reporting; and
• Lastly provincial departments were expected to indicate whether they or did not deviate from their 2010/11 business plans on the grant.

The provincial departments of Arts and Culture of Eastern Cape, KwaZulu-Natal, Limpopo, Mpumalanga, Northern Cape and North West were identified and invited. All provincial departments, except Mpumalanga and Limpopo, honoured the invitation.

The National Treasury was invited to brief the Committee on the third quarter spending of the above-mentioned provincial departments.

3 Presentations

The National Treasury and the provinces of Northern Cape, Eastern Cape, North West and KwaZulu-Natal made their presentations as follows:.

3.1 National Treasury

The National Treasury reported that, for the third quarter of the 2010/11 financial year, the adjusted budget had been R561. 061 million and the total projected outcome, R507. 822 million. They added that at the end of the third quarter provinces had spent R300. 383 million or 53.5 per cent. Only the Province of Limpopo had projected an over-spending of R6. 384 million. Three provinces had projected an under-spending, which in total amounts to R59. 623 million (that is R39. 371 million for Eastern Cape, R8. 211 million for Mpumalanga and R12. 041 million for Northern Cape).

The National Treasury reported that audited outcomes of the third quarter in 2009/10 financial year showed that provinces had spent R281. 178 million of the R460. 832 million adjusted budget. Therefore, National Treasury presented that in comparing year-on-year growth with the third quarter in the 2009/10 financial year; provinces had spent 6.8 per cent more in the third quarter of the 2010/11 financial year. Moreover, the National Treasury highlighted that preliminary audit outcomes of the 2010/11 financial year indicated that provinces had spent R493. 274 million or 87.9 per cent of the adjusted budget. Added to that, National Treasury said provinces had under-spent by R67. 787 million or 12.1 per cent of the adjusted budget. On a year-on-year comparison, National Treasury reported that provinces as at 31 March 2011 had spent R417. 993 million or 18.0 per cent more as compared to the 2009/10 financial year audit outcomes.

On issues affecting expenditure in provinces during the first three quarters of the 2010/11 financial year, the National Treasury listed the following:

• Eastern Cape: There is slow progress on the Mdantsane library project. The explanation given was that provincial officials had cited misunderstandings with the local community as leading to delays in the project. However, further investigation had also revealed challenges with the contractor’s delivery performance;
• KwaZulu-Natal: Internal supply chain management challenges had led to a slow start to projects and therefore under-expenditure;
• Limpopo: The upgrading of projects and the purchasing of library material had been delayed due to slow appointment of service providers which suggested challenges in the internal supply chain management or poor planning.;
• Mpumalanga: This province had also struggled to manage its internal supply chain processes, as well as contractor performance. As a result most expenditure had only taken place in the fourth quarter;
• Northern Cape: there had been a delay in finalising Service Level Agreements (SLAs) with municipalities, and this contributed to a significant decline in expenditure as compared to the previous year’s expenditure; and
• North West: The province was clearly recovering from a low spending performance, but execution of planned projects was still very slow (late appointment of contractors), despite funds having been made available for capacity building that included staff.

The National Treasury further reported that though the mentioned challenges were due to supply chain management regulations; these regulations were necessary. The National Treasury explained that in order to safe-guard the use of public funds, supply chain regulations demanded that proper processes and planning were adhered to. However, it was clear that provinces could manage these processes in a more efficient manner. The National Treasury submitted that reports highlighted delays in the supply chain management processes in Eastern Cape, Free State, Limpopo, Mpumalanga and North West; and much of the shortfalls involved infrastructure upgrades and new buildings.

Furthermore, the Committee was informed that various initiatives and support systems were currently being implemented by the National Treasury to improve the situation. They included the following:

• Building technical and planning expertise through the Infrstaructure Delivery Improvement Programme (IDIP) programme in order to improve the performance of public works departments and therefore their delivery of library infrastructure projects;
• The Financial Management Improvement Plan. (FMIP) programme was designed to progressively roll out best practices in supply chain management, financial management and risk management within provinces; and
• Donor funding for these and other programmes was being sourced and the development aid process would be integrated into the budget process going forward.

The National Treasury informed the Committee that the success of these initiatives would be greatly improved by more attentive provincial management, as well as stronger leadership and oversight by accounting officers over community library programmes.

The National Treasury concluded that the disjuncture between the functional assignment of the libraries function (Schedule number 5A) and the current municipal operation of libraries presented challenges to provincial departments. Therefore, while SLAs between municipalities and provinces had temporarily assisted in the management of the function, certain provinces (especially KZN and Western Cape) had embarked on the provincialisation of the function, and this was likely to simplify the management of libraries.

3.2 The Province of Northern Cape

The provincial Department of Arts and Culture of the Northern Cape (PoNC) reported that its final appropriation for 2010/11 had been R77. 314 million and the actual amount spent had been R35. 297 million or 45.7 per cent. The PoNC reported that it had projected to spend R51. 647 million. The projected budget had aimed to cover compensation of employees (R6. 431 million); goods and services (R24. 461 million); transfers and subsidies (R7. 346 million); and payment of capital assets (R13. 409 million). Above all, the PoNC submitted unaudited financial outcomes for the financial year that ended on 31 March 2011. The province indicated that at the end of the 2010/11 financial year it had spent R61. 364 million or 79.4 per cent of its financial appropriation (R77. 314 million). The PoNC, reported that their allocation was reduced by R12. 048 million as per Government Gazette number 34 192 of 4 April 2011 due to under expenditure in the 2009/10 financial year.

The PoNC reported that the reasons for under-spending R15. 042 million on the current payments line-item included delays in recruitment by the human resources unit and payment of service providers by the finance section. Under-spending of R301 000 on line-item transfers and subsidies had been due to non-compliance by municipalities to regulatory and reporting requirements. Added to that, the PoNC reported that under-spending of R1. 007 million on payments on capital assets had been mainly because there delays had been experienced in infrastructure projects and the Information Communication and Technology (ICT) rollout.

When asked about other reasons for under-spending, the PoNC reported that having vacancies for two financial years at critical positions like Director of Finance, Finance Manager, and Supply Chain Manager had further contributed to under-spending on the Grant. The appointment of these candidates were, however, in progress and it would be finalised before 01 July 2011. They added that transfer of the roll-over had only been processed around 15 December 2010 and at that time construction businesses had been closed for the holidays.

With respect to service delivery targets per project at the end of the third quarter, the PoNC reported that it had targeted to commence constructing one new library but it had failed to meet its target. The PoNC added that it had targeted to employ 190 new employees but only 125 had been employed, no levels were indicated. On project training and development, the PoNC submitted that it had planned to train or develop two employees but seven had been trained or developed. With respect to outreach and promotion projects, the PoNC said it had reached its target of five planned promotional projects. On providing support to municipalities, the PoNC presented that of the annual target of providing support to 28 municipalities, 22 had received transfers. With respect to the Information Communication Technology (ICT) roll-out, 114 libraries had been targeted but none had been provided with Information Communication Technology (ICT). Lastly, the PoNC reported that it had targeted to spend R100 000 on new material for libraries but had only spent R6 200 as at the end of the third quarter.

With respect to reasons for under-spending on the above projects, the PoNC indicated the following:

• The construction of the Nababeep library had been delayed due to slow processes in the supply chain;
• Staff turnover had been high and delays had been experienced in the recruitment and selection processes;
• Not all transfers to municipalities had been executed due to non compliance with requirements.
• Roll-out of the ICT infrastructure and systems had been delayed as challenges had been experienced with the State Information Technology Agency (SITA) around the procurement processes and systems; and
• Delays had been experienced in the delivery of library material from suppliers.

With regards to monitoring of transfers, the PoNC reported that monthly progress reports were submitted by municipalities and district offices conducted regular visits to municipalities to ensure adherence to the business plans. Therefore, when municipalities did not comply with business plans, interventions were made to ensure compliance through correspondence and meetings were convened with the municipal officials concerned.

The PoNC reported that among the factors that contributed to under-spending was the fact that infrastructure projects were normally done through third parties –such as the provincial Department of Roads and Public Works for infrastructure projects and SITA for ICT projects. Also mentioned by the PoNC was that municipalities had experienced capacity constraints, resulting in non-submission or late submission of correct and compliant business plans.

With respect to the 2010/11 business plan, the PoNC reported that it planned to achieve the following:

• Provide services in rural areas
• Implement a digital library service system at 114 sites
• Campaign for library usage and reading promotion programmes (run-to-read campaign and Northern Cape Writers Festival)
• Construct one new library
• Train staff on the third annual Library Services Symposium
• Transfer funds to municipalities on time
• Provide IT infrastructure maintenance to 86 points.

Furthermore, the PoNC reported that there had been no deviations from the 2010/11 financial year business plan. The business plan had been amended to utilise projected under-spending in compensation of employees on three projects: the liberation struggle heritage legacy book project; the Management Information System; and solar panels for containers.

3.3 The Province of Eastern Cape

The provincial Department of Arts and Culture of the Eastern Cape (PoEC) reported that it had an adjusted budget of R82. 163 million, which includes an allocation of R77. 240 million plus a roll-over of R4. 923 million. The projected budget had been aimed to cover compensation of employees (R11. 920 million); goods and services (R27. 444 million); transfers and subsidies (R1.000 million); building and other fixed structures (R29. 685 million) and machinery and equipment (R7. 191 million). The PoEC said that, for the third quarter, it had budgeted to spend R23. 800 million but the actual spending had been R8. 141 million, therefore they had under-spent by R15. 659 million.

With respect to expected outcomes, the PoEC submitted that it intended to do the following:

· Improve library infrastructure and services that reflect the specific needs of the communities they serve. (Since the inception of the grant , 79 libraries have been renovated and this has improved library usage as these libraries are now accessible. A further two libraries -Mdantsane and Mount Ayliff-are under construction;

· Transform and equip library and information services meant for all rural and urban communities. An indicator of that was that in the 2010/11 financial year a total of 70,000 library materials were purchased and delivered to public libraries;

· Improve co-ordination and collaboration between national, provincial and local government on library services. An indicator of that was that the Stakeholders Consultative Workshop and library summit were convened and they have enhanced the relationship with municipalities;

· Improve a culture of reading. The South African Library for the Blind benefits from the Grant by providing a special service for people with visual disabilities; and

· Improve staff capacity at urban and rural libraries to respond appropriately to community knowledge and information needs. Qualified librarians had been employed and deployed to public libraries. Operational hours of libraries had since improved with 55 per cent because libraries were now open eight hours a day as a result of the additional staff appointed.

With regards to delivery indicators and targets per project at the end of the third quarter, the PoEC reported that it had targeted to upgrade and rehabilitate nine libraries but only two libraries had been upgraded due to the outcome of a court case in KwaZulu-Natal (Case No 10878/2009). The PoEC added that it had targeted to provide ICT infrastructure to seven libraries; maintain automated library facilities in 100 libraries; install tattle-tape detection and Closed-Circuit Television (CCTV) security systems in 17 libraries; and provide furnishings to 11 libraries. All these targets had been met. With respect to a new and updated library collection, the PoEC reported that it had purchased and distributed 40 000 books. On improvement of reading culture and capacitating of staff at urban and rural libraries, targets had been met.

When the Committee expressed its displeasure about the under-spending, the PoEC explained that many factors had contributed to the under-spending. These included:

• The awarding, by the Department of Public Works, of infrastructure projects to emerging contractors who have cash-flow challenges;
• State Information Technology Agency (SITA) delays in billing because their invoices come from their head office; and
• A high staff turn-over due to conditions of employment - appointment only on contract.

Remedial actions implemented and proposed by the PoEC included the following:

• Projects were submitted to the Department of Public Works frequently so that the contractors could start implementing projects early and be able to complete their work within a financial year;
• Meetings were held at national level with SITA to renegotiate for the de-centralisation of their billing system;
• At provincial level meetings were held to pressurise SITA to submit invoices; and
• Conditional grant staff should be incorporated into the equitable share to ensure sustainability and continuity.

When asked by the Committee how it monitors the spending of the Grant funds, the PoEC explained that it had a monitoring and evaluation unit under its Strategic Planning Management component that was assisting in ensuring that projects were done according to plans (Business Plan, Annual Performance Plan and Operational Plan) and reporting was done monthly and quarterly. Added to that, In-Year-Monitoring was done internally to check the spending patterns against cash-flow projections. These reports were then sent to the provincial and national treasuries through the national Department of Arts and Culture (NDAC). Moreover, the PoEC submitted that monthly and quarterly reports were submitted to NDAC and quarterly reviews were also held with NDAC. The PoEC further explained that the Grant had its administration unit, which included a Project Manager, Acquisitions Officer and an Administrative Officer.

With respect to achievements, the PoEC reported that, the design for the Mt Ayliff library had been finalised and a tender for constructing it had been advertised. On Mdantsane Library, the PoEC reported that the conflict with the community regarding the steering committee had since been resolved and the project was started in December 2010. The Committee was further informed that all tenders for containers; outdoor learning equipment and detection systems had been awarded. Furthermore, the PoEC reported that all 88 libraries targeted for ICT infrastructure had been cabled and provided with computers, internet and e-mail facilities.

The PoEC concluded that the high priority in the province was provision of infrastructure to all libraries but unfortunately infrastructure projects were not implemented as fast as they would like. The PoEC added that since the inception of the Grant they had managed to upgrade a total of 64 (sixty four) libraries. The PoEC further explained that the infrastructure field was too technical and it had been outsourced to implementing agents (provincial Department of Public Works and COEGA).

3.4 The Province of North West

The provincial Department of Arts and Culture of North West (PoNW) reported that in the 2010/11 financial year its allocation was R59. 275 million, with a roll-over of R13. 433 million. The PoNW said the total allocation, R72. 708 million, for 2010/11 was allocated according to Grant priorities and only R34. 534 million or 47.5 per cent had been spent. The PoNW submitted that for the third quarter R15. 917 million had been transferred to the province and R14. 108 million had been spent.

With regards to service delivery targets per project at the end of the third quarter, the PoNW reported that it had met most of the targets. However, they had targeted to establish one mini-library to service visually impaired people, but failed to meet this target due to new procurement procedures that had been introduced. The PoNW added that they had targeted to upgrade infrastructure in four libraries but only backlogged projects from 2009-2010 had been upgraded. With respect to improvement of ICT infrastructure, the PoNW submitted that they had planned to install open source software in five libraries, but no software had been installed in the targeted libraries. With respect to providing library containers to three targeted municipalities, the PoNW said it had not finalised the procurement process by the end of the third quarter due to the slow process of adjudication. With regards to organising literacy campaigns, the PoNW presented that they had targeted to organise five campaigns, but only managed to arrange two.

With respect to achievements, the PoNW reported that the Grant had enabled the province to -

· Build four new libraries;

· Upgrade and maintain 12 community libraries;

· Procure library furniture for new and old libraries;

· Provide security in 16 community libraries;

· Provide vehicles for library staff in 16 local municipalities;

· Implement brocade library systems in 14 community libraries;

· Install internet in 20 community libraries;

· Purchase 50 computers for new and upgraded libraries;

· Purchase and put three container libraries in three local municipalities;

· Introduce one mobile library bus to promote library services and reading awareness campaigns;

· Organise literacy campaigns in 21 local municipalities;

· Convene four events to raise awareness on reading books written in indigenous languages;

· Purchase promotional material to support reading awareness and library promotion programmes;

· Appoint 24 professional and support staff for community libraries;

· Provide five training courses to community library staff;

· Send 56 community librarians to attend profession conferences; and

· Involve Early Childhood Development Educators in the programme.

With regard to reasons for under-spending, the PoNW reported that poor management of supply chain management processes had led to delays in implementing certain projects. The two major projects affected had been the Mamusa Library project and the Lebaleng Library project. The province added that Mamusa project funds had been transferred to the local municipality but the project was yet to be finalised. As a result, the PoNW had appointed internal auditors to investigate and compile a report on how the municipality had spent the Grant funds. If the municipality was found to have spent Grant funds on irrelevant projects, they would be forced to refund the province. The Committee was told that the Lebaleng project was at roof-level but no additional funds would be provided.

The PoNW reported that challenges leading to under-spending included –

• The lack of an effective system of supply chain management resulted in delays in approving tenders and appointing service providers to implement projects;
• The interface of the Basic Accounting System (BAS) and the Walker System caused delays with capturing of orders and also the misallocation of funds in the system delayed placing of orders;
• Delays with filling of vacancies. Some posts had been advertised in May 2010 but have only filled in December 2010 and March 2011; and
• The implementation of capital projects had been delayed by local municipalities who had failed to appoint consultants and contractors on time.

When asked how they intended to address the challenges, the PoNW submitted that remedial actions would include the following:

• An improved turn-around time to approve tenders and appoint service providers - the evaluation of tenders would take place within 14 days, adjudication within seven days and the tender awarded within seven days;
• The finance component would ensure that funds were correctly allocated at the beginning of the financial year to improve the time delays with capturing of orders;
• The human resources component would improve the turn-around time to fill vacancies and adhere to the three months period; and
• The PoNW had taken a decision to take over building projects of community libraries from municipalities. The provincial Department of Public Works, Roads and Transport would serve as implementing agent. Local municipalities who had shown commitment would be allowed to finish the projects already in progress.

3.5 The Province of KwaZulu-Natal

The provincial Department of Arts and Culture of KwaZulu-Natal (PoKZN) reported that for the 2010/11 financial year it had been allocated R38. 282 million plus a roll-over of R4. 992 million from the previous year for under-expenditure on infrastructure. Therefore the total allocation was R43. 274 million and the actual amount received was R37. 692 million because the fourth tranche of R5. 582 had been withheld. As at the end of the third quarter of financial year 201/11, the province spent R19.145 million or 44.2 per cent according to National Treasury.

With respect to Grant projects, the PoKZN reported that the Grant had made it possible for the province to -

· Install free internet at 72 libraries;

· Employ cyber cadets at each site for training and capacitating members of the public in ICT skills;

· Purchase prescribed textbooks supporting tertiary education distance learners;

· To collect, together with the department of education, material supporting the school curriculum;

· Migrate to a new automated library management system for all libraries;

· Increase access to 3 million resources;

· Construct a new library and regional library depot in Mbazwana;

· Construct a new library with a museum at Qhudeni;

· Purchase two pre-fabricated libraries for rural areas;

· Purchase four mobile library trucks to promote a reading culture;

· Provide mobile trolley collections in 19 sites with employment of volunteers who were provided with stipends;

· Employ eight support staff members for the Family Literacy Project; and

· Enter into a partnership with eThekwini Metro and the Carnegie Corporation for the building of a new city library for Durban.

With regards to key outcomes, the PoKZN reported that there had been increased usage of libraries. Quantitative data had been collected from head counting systems installed in 50 libraries, where usage had been higher than membership and circulation of books. The PoKZN added that there had been an increased usage by adult students in the mornings. Lastly, the province submitted that capacitating community members with computer skills had increased interest in library and internet services.

The PoKZN reported that it under-spent due to delays in the Mbazwana project:

· The Mbazwana Library/Depot which was a R31 million project, had experienced delays due to an underperforming contractor. The contractor had finally been dismissed mid-2010 for consistent poor performance and a new tender to finalise had been awarded. This delay had further been compounded by legal wrangling; and

· Delays in procurement of furniture and equipment for Mbazwana Library further affected expenditure.

The PoKZN presented that monitoring of Grant spending was conducted through compiling monthly financial data reports and quarterly reports which were submitted to national Department of Arts and Culture and the Provincial Treasury on a regular basis. The Committee was informed that review meetings with the national Department of Arts and Culture were held quarterly. The PoKZN reported that internal auditing on conditional grant spending was an ongoing exercise. The PoKZN added that Evaluation Committee meetings and ProvincialTreasury bi-lateral meetings were convened. The PoKZN concluded that there was a regular monthly monitoring inspection by the provincial coordinator who had been appointed by the national Department of Arts and Culture.

With regards to the monthly reporting by municipalities, the PoKZN reported that all transfer payments made by the department to municipalities were supported by signed memorandums of agreement. Moreover, a monthly reporting template was sent to all municipalities and there was a dedicated staff member assigned to regularly make follow-ups with municipalities. The template showed improvement on compliance and reflected annual transfers only approved together with proof of expenditure of previously transferred funds. Furthermore, the PoKZN submitted that visits to all local municipalities would be conducted between April and June 2011 before the start of the new municipal financial year.

The PoKZN concluded that the Grant had allowed for great strides to be taken in the transformation of community libraries, as proposed in the Library Transformation Charter. The PoKZN concluded that community libraries had a significant role to play in the development of human capital, alleviation of poverty and the upliftment of society.

4. Remarks by the national Department of Arts and Culture

The national Department of Arts and Culture (NDoAC) informed the Committee that severe inconsistencies had been picked up in 2008 between how municipalities spent grant funds and the objectives of the grant. The Department further said that infrastructure projects were complex in nature; they involved planning which required the involvement of all affected stakeholders, and a time frame of three years. The NDoAC explained that the first year was for planning and drawing up of specifications of projects; the second year for implementation of projects and the third year for finalising the project.

The NDoAC informed the Committee that they supported provinces and when challenges were identified, provinces were allowed to amend their business plans to ensure that under-spending was curbed. The NDoAC said provinces were constantly advised to use their discretion on whether or not to transfer funds to municipalities, if there were indications that a municipality did not have the capacity to manage infrastructure development. However, the Committee did not agree with this submission. The Committee cautioned the NDoAC that withholding funds should be a last resort and this could only be done after the third quarter.

When asked how they planned to assist and resolve challenges that provinces had submitted, the NDoAC reported that site visits and road shows to provinces would be strengthened. These would also be done when there were indications that provinces were under-spending. The NDoAC further said it was trying to create a platform for provinces to share library resources. Moreover, the NDoAC indicated that best practices were continuously shared by provinces and National Treasury was assisting in this regard.

.

5. Conclusions

After interacting with the National Department of Arts and Culture, provincial departments and the National Treasury, the Committee concluded the following:

5.1 There are challenges which persist within provinces with respect to the supply chain management processes and they appear to be caused by poor management in the component (Recurring observation).

5.2 Officials who are occupying positions in the higher echelons of departments are not implementing or taking decisions as expected of them.

5.3 Most provincial departments reported that the provincial Departments of Public Works contributed to their under-spending because they appointed emerging contractors who then failed to complete projects because they had cash flow challenges or were inexperienced (Recurring observation).

5.4 Late submission of invoices or billing by SITA head office was identified as a contributing factor to the low expenditure.

5.5 The provincial Departments of Arts and Culture do not have a strategy to follow-up on funds transferred to municipalities and ensure that they are spent on the Grant’s priorities and this may open a loophole for misappropriation of taxpayers’ money (Recurring observation). This is due to the fact that the Committee had noted during the last interaction with provinces (on 06 June 2010) that conditional grant funds that were transferred to municipalities appeared as spent on financial reports of provinces; whereas municipalities were not spending or spent the funds on projects that did not meet the criteria of the grant.

5.6 The provinces of KwaZulu-Natal and the Western Cape have moved the implementation function from municipalities to provinces.

6. Recommendations

Having considered the briefings on the spending on the Community Library Services Grant by the National Treasury, the national Department of Arts and Culture and the afore-mentioned provincial departments, the Select Committee on Appropriations recommends that the National Council of Provinces considers the following:

6.1 That the provincial Departments of Arts and Culture should, as a matter of urgency, strengthen their supply chain management units to avoid delays in tendering processes;

6.2 That the national Department of Arts and Culture should assist provinces in fast-tracking the provincialisation of the community library services function;

6.3 That ,where there are staff shortages or high staff turnover due to conditions of employment, the national Department of Arts and Culture should provide assistance to provincial Departments of Arts and Culture;

6.4 That, even though emerging contractors should be capacitated, the provincial Departments of Public Works should ensure that they appoint experienced contractors who will provide better services to the poorest of the poor;

6.5 That the national Department of Arts and Culture should strengthen reporting requirements for municipalities to ensure that conditional grant funds transferred to municipalities is spent adequately; and

6.6 That all provincial Departments of Arts and Culture should adopt the approach of the North West’s provincial Department of Arts and Culture, and involve the Early Childhood Development practitioners in their Community Library Services Grant programmes.

Report to be considered.