DID ANNUAL REPORT 2022 23

Annual Report 2022-2023

The Department is embarking on implementation of commercialisation and optimisation strategy to identify revenue generating, space optimisation and cost reduction strategies for properties. The Department will also continue to identify and evaluate the provincial properties and prioritise the most valuable assets with the highest potential for repurposing and development. These properties will also be presented to the market for possible investors.

Programme Expenditure

2021/2022

2022/2023

Programme Name

Actual Expenditure

Actual Expenditure

Final Appropriation

(Over)/ Under Expenditure

Final Appropriation

(Over)/Under Expenditure

R’000

R’000

R’000

R’000

R’000

R’000

430 659

403 641

27 018

479 238

448 389

30 849 55 815

Administration Public Works Infrastructure Expanded Public Works Programme

2 651 586 2 629 775

21 811 2 726 377 2 670 562

166 775

142 993

23 782

149 620

123 530

26 090

Total

3 249 020 3 176 409

72 611 3 355 235 3 242 482

112 753

Analysis of the Department’s performance per programme is listed in the table above. The Department was allocated a budget of R3,3 billion in the year 2022/23; to date, R3,2 billion of the allocated budget has been spent. Despite 97% of the allocated budget being spent, the Department underspent by R112 million compared to R72 million the previous financial year. Out of the R112 million underspent, R27 million is related to stipends for the EPWP beneficiaries, R9 million is related to rates and taxes, and R53 million is related to goods and services. The main cost driver for the current year expenditure is compensation of employees, leases, infrastructure, security services, rates, and taxes. Compared to the previous financial year, the Departmental budget increased from R3,2 billion to R3,3 billion and expenditure from R3,1 billion to R3,2 billion. Increase in current year budget allocation related to the increased number of properties that the Department pays rates and taxes. Administration provides strategic leadership to the Department and support core programmes. Administration was allocated a budget of R479 million, and to date R448 million was spent. The underspending of R30 million is related to computer equipment that was bought and delivered in the current year but invoiced after the payment run cut off. All activities that were implemented within this programme are administrative in nature. The Department spent 94% of its allocated budget in the years 2022/2023 and 2021/22 respectively. The Office of the MEC spent 90% of its allocated budget. Corporate Support spent 94% and Management spent 88% of their allocated budgets. The budget allocation increased from R430 million in the year 2021/22 to R479 million in the year 2022/2023. The 10% increase in the budget allocation from Provincial Treasury related to funding for cost-of-living adjustments that was implemented in the prior year without funding but only allocated budget in the current year. Programme 1

Programme 2

Public Works was allocated a budget of R2,7 billion compared to previous financial year’s R2,6 billion. . The increase related to funding that was provided for new properties that were discovered during verification. This programme provides core services that are mandated to the Department. The bulk of the Department’s budget is allocated to this

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DEPARTMENT OF INFRASTRUCTURE DEVELOPMENT