DIRCO Annual Report

Programme expenditure

2020/21

2020/21

(Over)/under expenditure

(Over)/under expenditure

Programme name

Final appropriation Actual expenditure

Final appropriation Actual expenditure

R’000

R’000

R’000

R’000

R’000

R’000

Administration

1 358 532 3 266 959

1 289 067 3 337 975

69 465 (71 016) (19 065)

1 698 484 3 069 527

1 294 910 3 313 934

403 574 (244 407)

International Relations International Cooperation Public Diplomacy and Protocol Services

505 613

524 678

538 543

541 104

(2 561)

279 870

235 307

44 563

298 886

289 046

9 840

International Transfers

903 994

821 806

82 188 69 465

903 075

871 050 310 044

32 025

Total

1 358 532

1 289 067

6 508 515

1

Roll-overs The department did not request a roll-over of funds for the 2019/20 financial year. Unauthorised expenditure The department incurred an unauthorised expenditure of R90 million, resulting from the overspending on COE. The 2020/21 financial year COE ceiling was not sufficient to cover the cost for the filled positions in the department. The department is in a process to develop cost-saving measures plan to reduce spending on COE. Public-private partnerships (PPPs) During the period under review, the department did not enter into any new PPP Agreement (PPPA). The department continued to manage and service its existing PPPA with the Imbumba Aganang Private Party that was concluded in 2009. The contract is managed strategically and operationally with a focus on the performance of the private party as per the agreed output specifications and performance standards, with penalties being levied for performance and availability failures. Future plans of the department

The department experienced higher expenditure on compensation of employees (COE) attributable to the COE ceiling implemented by National Treasury, which does not cover the cost for the filled positions as well as the depreciation of the Rand against major currencies, which impacted expenditure incurred in foreign currency. However, a lower expenditure trend was experienced on payment of capital assets as a result of delays in the acquiring of information and communications technology (ICT) services as was initially planned in the 2020/21 financial year and delay in implementation of the infrastructure plan due to capital projects identified for the 2020/21 financial year, which were still in the planning phase and the procurement process has not been finalised. Virements The department processed the following virements: • R112 million from Programme 1 to cover the shortfall in Programme 2 due to exchange rate fluctuation. • R24 million from Programme 4 to cover the shortfall in Programme 2 (R8 million) and Programme 3 (R16 million) due to exchange rate fluctuation.

Annual Report 2020/2021 I Vote No. 6

15