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Policy speech 2001/02 for Department of Finance
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Speeches and Media Release
 Provincial Treasury, Economic Affairs, Environment & Tourism

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EASTERN CAPE PROVINCIAL GOVERNMENT
 POLICY SPEECH 2001/02 FOR THE DEPARTMENT OF FINANCE
 BY  MEC GODONGWANA
 13 MARCH 2001



Mr. Speaker
Hon. Premier
 Members of the Executive Council
 Members of the Provincial Legislature
 Members of the Public
 Officials from departments
I greet you all.

In 1988, the World Bank Development Report noted that public finances shape the course of development. All keen politicians and public 
managers who look after state funds seek to achieve this. Each year is an incremental development from the previous. Brick by brick we 
build the house of a non-racial, non-sexist and united South Africa.

When we read the Budget Speech, we announced that the province is out of the woods with respect to the debt. Whilst it is obvious that debt 
payment doesnt translate to development, it is however true that it provides us with a greater opportunity for better use of resources for 
development. You would note that in all the previous years, the debt problem tended to dominate the strategic thrust of the department. 
This, we believe, was a conscious decision based on an assumption that the debt burden had a huge potential of misdirecting resources that 
would have otherwise been used for development. Overcoming the debt problem therefore, was critical if the Province was to be pushed to a 
new developmental platform. The implication therefore is very clear that the thrust of the department would of necessity have to change in 
order to face the new challenges.

This financial year, the Department of Finance and Provincial Expenditure (DFPE) will focus on strategic financial management, which must 
enable managers to be more in control of their financial environments and enhance the service delivery. I would want to emphasize that the 
overall role of the department is regulatory, co-ordinating and planning in nature. This therefore necessitates that efficiency and 
strategic focus become the driving force of our activities.

Strategic Planning thus becomes the cornerstone of strategic financial management. Principles underpinning this approach are:

* Clarity of objectives, roles and responsibilities of officials
* Accountability of managers
* Engagement of beneficiaries of our services
* Delivering through strategic networks and partnerships

Guided by the above principles our overall strategic thrust then is:

* The devolution of financial management in accordance with Public Finance Management Act (PFMA);
* A focused programme to enhance financial management capacity of departments;
* Improving internal efficiencies within Provincial Treasury.

With regards to the devolution of financial management, a few points need to be emphasized. Of critical importance, is the establishment of 
effective internal control mechanisms in the various departments. Pertinent to internal control is rapid improvement of the quality of 
financial information and continuous risk analysis. Hence the new emphasis on appropriation balanced with accurate financial reporting. We 
also submit that these elements can only be successfully implemented with a strong performance management system. In this regard, part of 
our strategy this year will be consolidating our relationship with the Office of the Premier on Internal auditing and institutionalising 
performance management systems. We also want to work more strategically with the provincial legislature on monitoring expenditure in 
communities out there rather than from just departmental reports. We must talk of real outputs and outcomes. The department will also seek 
improved co-operative governance with municipalities and national government departments, which are based in the province. A lot of 
financial resources available to the various spheres of government for financing development require better strategic management so as to 
achieve the necessary economies of scale and integration. Our challenge continues to be the provision of accurate financial information to 
all stakeholders including National Treasury and the Auditor Generals office but also more importantly to mutually develop a better 
working relationship with this office. All departments are required to rise to the challenge of managers taking more responsibility for the 
management of resources they use.

The core of our capacity building initiatives in departments will be the support that we hope to provide to Chief Financial Officers. It is 
obvious that the bulk of financial management and control will have to be driven by these officials, hence the need to focus on ensuring 
that they not only have appropriate skills, but also have a system of support that is both functional and effective.

With regards to improving financial efficiencies within Provincial Treasury, it was considered appropriate to undergo a rigorous strategic 
planning process, which resulted in the reconfiguration of programmes. Programme reconfiguration is going to take sometime into the next 
financial year and it will take into consideration the historical development of the programmes. In line with the PFMA section 5 (1) and 17 
(1) that establishes National and Provincial Treasury respectively, the department shall be known as Provincial Treasury instead of 
Department of Finance and Provincial Expenditure. There will now be five programmes namely:

* Executive Management,
* Financial Management,
* Accounting Services,
* Support Services; and
* Treasury Reserve.

It is appropriate to look at three critical policy issues before getting into the planned programme activities for the financial year. 
These are:

1. procurement policy reform;
 2. borrowing powers; and
 3. taxation.

1. Procurement Policy Reform

The current developments, particularly with the passing of the Public Finance Management Act (PFMA), necessitate that the procurement 
policy in South Africa undergoes an overhaul, whilst emphasising the current policy imperative of ensuring that procurement by public 
institution be "fair, equitable, competitive, transparent and cost effective". It has become apparent that there is need to realign 
procurement processes to give effect to both policy and legal imperatives. At a national level a decision has already been taken to abolish 
the State Tender Board not later than 30 September 2002. It is clear therefore that the Eastern Cape must align its procurement procedures 
with those of National. In order to do that cognisance should be taken of the following changes:

1. The realignment of the process will in due course cause the abolishing of the provincial Tender Board. This might entail inter alia:

a. ad hoc procurements below R2 million being devolved to accounting officers in departments, and

b. A Common Service Provider being established to manage transversal contracts and contracts above R2 million - the composition of which 
will include senior civil servants under the Head Official of Treasury.

2. Flowing from the above:

a. National Treasury assistance to the Eastern Cape through the DDG - Special Programmes has been secured;

b. Procurement reform committee will be set up in the new financial year; and

c. A proposal for the Eastern Cape to be considered as a pilot province has been submitted to the National Treasury. If approved, Eastern 
Cape, together with four national departments: (Water Affairs & Forestry, Trade & Industry, Communications, and the National Treasury) will 
be the first to implement the procurement reform.

2. Borrowing Powers

The National Treasury is also driving another programme with wide ranging implications for provinces, namely the devolution of borrowing 
powers to provinces. Implementation of this would enhance the provinces engagement with the money market. Borrowings will be a useful 
financial instrument, ensuring that additional resources, particularly for capital projects will be made available to the province. We are 
already preparing to take full advantage this new opportunity.

3. Taxation

As indicated in the Budget Speech, another window for provinces to raise their own revenue is being explored through the Provincial Tax 
Regulation Bill which will enhance the provinces fiscal capacity. Already an investigation committee has been set-up to consider the legal, 
economic and other implications on provincial tax powers within the new regulatory framework. Having emphasized the significance of this, 
it must also be stressed that this imposes new pressures on provincial capacity for the administration, collection and monitoring.

It is therefore envisaged that in the new financial year we have to sustain a dual strategy of refining and improving the internal 
competencies of provincial treasury whilst at the same time sharpening the support and service to other provincial departments.

Below are elements of the strategy that the DFPE will apply this year in providing leadership in the province on its course to sustainable 
development through strategic financial management. The budget summary we provide is aimed at concretising the strategic thrust we have 
just outlined.

Budget Allocation for the financial year 2001/02

Programmes       2000/01         2001/02         %       Variance
         R'000   R'000           R'000
1. Executive Management  4,740  6,978   47.2     2,238
2. Financial Management  34,166         44,114  29.1     9,948
3. Accounting Services   39,145         39,178  0.1      33
4. Support Services      24,727         23,666  4.3      1,061
5. Treasury reserve      1,057,493      140,010         86.8     -917,483
Total    1,160,271      253,946                  -906,325

Programmes for the year 2001/02

Programme for 2001/02
         1. Executive Management
Sub-programme    2. Financial Management 2.1. Management: FM 2.2. Budget Office 2.3. Expenditure Control 2.4. Capital Budgeting 2.5. Cash 
Management Services 2.6. Financial Information Systems
Sub-programme   3. Accounting Services 3.1. Management : Accounting 3.2. State Purchases 3.3. Financial Management Training 3.4. Financial 
Control 3.5. Pre-Audit and Salary Administration
Sub-programme    4. Departmental Administration 4.1. Departmental Management: Management 4.2. Finance and Auxiliary Services 4.3. Human 
Resource Management 4.4. Special Programme Unit
         5. Treasury Reserve

Programme 1: Executive Management

This programmes is composed of the MECs office and the Superintendent Generals office. This programme seeks to provide sound financial 
leadership through policy formulation, implementation and provision of Treasury services to the provincial government, which are consistent 
with national government macroeconomic and fiscal objectives and to ensure effective and efficient implementation of the Public Finance 
Management Act. A Policy and Governance manager and a Legislature Liaison Manager will be appointed to improve relations and inputs on 
policy and legislative matters respectively. Achievements for 2000/01 In line with our role in the year ending this month we are proud to 
announce some of our achievement from policy speech we made last year. This programme:

* Facilitated the clearing of balances for the purpose of closing the books of prior years;
* Reformed the budgeting process to be in accordance with the PFMA expectations;
* Eliminated the debt of over R2 billion from previous years to almost zero;
* Enabled forensic investigations that resulted in successful convictions;

l Implemented the electronic Financial Information System (eFIS) in the DFPE and Department of Transport;

l Reduced the use of cheque payments to less than 2% of all payments in the provincial government.

Priorities for 2001/02

In the next financial year we commit ourselves:

* To ensure that some centralised functions like the Pre-Audit and Revenue Collection System are decentralized in a systematic and orderly 
manner to Provincial departments.
* To build financial management capacity in departments and also specialist management in Treasury.
* To ensure that competent Chief Financial Officers are appointed in all departments and sufficient support is built around them for 
sustainable capacity building.
* To set-up financial information systems that provide accurate and reliable information for various stakeholders. This will include the 
shifting from FMS to BAS from 1 July 2001 in relatively small departments. Departments of Health and Education are scheduled to go live 
from 1 July 2002.

Programme 2: Financial ManagementSub-programme 2.1. Management Financial Management Branch is responsible for preparation of the provincial 
budget, monitoring of expenditure against the budget, capital planning and control, management of treasury services and management of 
financial information systems.

Budget Office will integrate the functions of the current Budget Office and Expenditure Control and be known as the Budget Management 
division, as well as substantially change the approach of working in Cash Management Services and Internal Revenue Management. There will 
still be two managers in the Budget Management division as at present, but they will be responsible for different clusters of departments, 
namely Health and Education as one cluster and Welfare and Economic departments as the other. The Budget Management divisions will be 
responsible for the budget preparation, and the monitoring of revenue and expenditure of departments, including the provision of PFMA 
dispensation services.

The Internal Revenue Management division is presently called Provincial Revenue Collection and is to be restructured so that the routine 
tasks of monitoring the collection of revenue is decentralised to the affected departments. Treasury will focus on the economic analysis of 
revenue issues, recommending changes to provincial taxes and assessing the economic impact of types of revenue. It will also focus on 
investigating and making recommendations concerning the systems in use for the collection of revenue

With the expected passing of the Municipal Finance Management Bill during the first half of 2001, provincial Treasuries are expected to 
play a bigger role in the supervision of financial management issues of municipalities Treasurys role is clarified. At present no 
budgetary provision has been made for this sub-branch. With respect to the Cash Management Services division, there will be a considerable 
upgrading of the present provisions for the management of the cash flows of the provincial government. A programme of capacity building has 
been in progress during the last year to enable the management of Treasury to restructure and properly establish this important division. 
It will consist of components dealing with Money Market transactions, Financial Risk Management, and Cash Management Support services. A 
Risk Management Committee is to be established in order to regularly discuss issues affecting the financial risks being faced by the 
Treasury and to make investment decisions.

However, below I present sub-programmes in accordance with budget, in order to avoid inconsistency.Sub-Program 2.2: Budget OfficeThe key 
responsibility of the subprogram is to coordinate the planning, crafting and the processing of the provincial budget in a manner consistent 
with policy priorities and in conformity with National Treasurys standards, format and other requirements.

Achievement for 2000/01

In the ending financial year the programme:

* Organized and participated in the provincial Budget Indibano;
* Coordinated the linking of strategic plans and budgets from departments.
* Organised budget hearings where Senior Managers presented their departmental proposals to the Cabinet Budget Committee
* Prepared and produced budget documentation for the first time in a standardised GFS format

Priorities for 2001/02 In the following financial year the programme will:

* Improve the budgeting process and the quality of information in budget documentation.
* Find ways of improving the sources of data for the financial planning and management of departmental budgets.
* Establish a user-friendly budget compilation system within Treasury
* Facilitate broader participation in the budgeting process by various stakeholders.

Sub-Program 2.3: Expenditure ControlThis sub-programme provides concrete expenditure information and background in the preparation of 
departmental budgets. Its focus also includes provision of financial dispensation services for interpreting financial prescripts and 
administers the granting of approvals by Treasury.

Achievements for 2000/01

This year this programme:

* Conducted a budget achievability exercise with all departments to ensure measurable results.
* Improved the management of conditional grants by developing a reporting system compatible to National Treasury and National Departments 
requirements on monthly expenditure and compliance.
* Facilitated CFO support to departments.
* Facilitated the Early Warning System to monitor and project overall departmental expenditure on a monthly basis.

Priorities for 2001/02 Its priorities for the next financial year are:

* Improving financial management information through Information Technology Systems (Persal, eFis and FMS/BAS).
* Conducting budget achievability for monitoring service delivery outputs.
* Facilitating the establishment of internal control units in departments for overall risk management.
* Developing a simplified framework for the submission of monthly projected and actual expenditure.
* Effective, efficient and better management of revenue, expenditure, assets and liabilities.

Sub-programme 2.4: Capital Planning and ControlThis is a new sub-programme in the department. Its purpose is to finance infrastructure 
initiatives, assess and evaluate the financial planning undertaken by relevant departments for capital expenditure, facilitate the tender 
process, monitor and exercise control over capital expenditure. It will also work hand in hand with the Office of the Premier in terms of 
linking Capital Planning and Budgeting.Naturally this sub-programme is new and has had no achievements in the ending financial year. So 
lets go straight to the plans for next year.Priorities for 2001/02The starting point will be to set-up a fully-fledged sub-programme whose 
focus will be:

* The development of a costing system for capital plans.
* Establishment of unit that will oversee PPPs for capital projects.
* Maintenance of a database for capital expenditure and their trends.

Sub-programme 2.5 Treasury ServicesThis sub-programme has two sub-divisions, cash management services and revenue collection services.

Sub-division 2.5.1 Cash Management Services The purpose of this programme is to ensure that sufficient cash is always available to finance 
the provincial government departments daily operating expenses and long-term capital plans, to ensure that return on any surplus cash is 
maximised and also raise borrowing, when its appropriate.Achievements for 2000/01In 2000/01 this sub-division succeeded in:

* Maintaining a healthy liquidity.
* Reducing government debt.
* Introducing BAS and CAMS system between ourselves and the First National Bank to improve cash flow management.
* Earning R100 million interest.
* Saving R128 million through verification and reconciliation of National Pension Fund.

Priorities for 2001/02

In 2001/02 the sub-division will focus on:

* Developing an Investment and Borrowing Policy to direct Treasury operations.
* Fully implementing BAS to keep track of all cash movements in the Provincial Revenue Fund.
* Establish an efficient and effective Treasury Risk Management System.

Sub-division 2.5.2 Revenue Collection ServicesThe objective of this sub-division is to coordinate and monitor effective and efficient 
revenue collection in all government institutions in order to maximize provincial own revenue.Achievements for 2000/01In the current 
financial year the sub-programme managed to:

* Collect more than 80% of revenue budget within six months.
* Establish revenue units in four departments in terms of the PFMA requirements.

Priorities for the 2001/02

We still identify improvement of internal controls in the collection of revenue as a major challenge. The following are therefore the 
priorities for the current year.

* Together with relevant departments establish appropriate revenue collection geared structures.
* Development of Debtors Recovery Systems.

It is such efforts that will build our revenue base and allow us to enhance our financial resources. Now let us turn to the information 
systems.

Sub-programme 2.6 Financial Information SystemsThe objective of this sub-programme is to manage and support financial information systems 
services to all provincial government departments, including within Treasury. Priorities for 2001/02:In the next financial year this sub-
programme will focus on the:

* Implementation of eFIS in the Head offices of departments to improve expenditure control measures
* Extension of access to FMS/BAS to all district offices of all departments

Programme 3: Accounting Service Sub -programme 3.1: ManagementIn compliance with the format for the financial oversight function introduced 
by the Eastern Cape Legislature during the 2000/01 financial year, State Purchases, Financial Management Training, Financial Control and 
Pre-Audit and Salary Administration have been merged under the Programme: Accounting Services. The programme is charged with the 
responsibility of ensuring sound financial administration through the following:

* Regulation of procurement in the province in accordance with Section 217 of the Constitution of the Republic of South Africa;
* Systematically building the financial management capacity of various departments through qualitative training;
* Provision of book-keeping, suspense accounting and forensic audit and investigation services in the province; and
* Provision of efficient and effective payment services to provincial departments and government employees.

Sub-programme 3.2: State PurchasesThe sub-programme regulates the procurement of goods and services, monitors and manages control of 
provincial government assets, manages state tender contracts and renders secretariat services to the Provincial Tender Board. Achievements 
during 2000/01In this sub-programme we:

* Conducted three information workshops on procurement processes for all departments.
* Increased tender awards to SMMEs, emerging contractors and Joint ventures with Affirmative Business Enterprises by 40%.
* Developed and issued Provincial Procurement Directives (E.C. 37) and Conditions & Procedures in respect of procurement (E.C. 36).
* Produced the Provincial Tender Bulletin, which is distributed weekly for improving access to tendering information.
* Implemented Logis in Frere hospital (E.L), Livingstone hospital (P.E.), Department of Education and Department of Public-Works.

Priorities for 2001/02In the coming year we will:

* Implement Logis in eight (8) more sites (PE Provincial Hospital, Dora Nginza Hospital, Cecilia Makiwane Hospital, Umtata General 
Hospital, Department of Local Govt, Housing & Traditional Affairs Head Office, Department of Agriculture & Land Affairs - Head Office, 
Department of Safety & Security - Head Office and Department of Education - PE office.
* Establish an asset register.
* Forge coherent links with Tender Advice Centres throughout the Province, which will improve support given to SMMEs on tendering.
* Implement an outreach programme of State Purchases.

At this point we must highlight that there is transformation of the procurement process countrywide. We are busy considering various routes 
to follow and simultaneously we are participating in the pilot projects together with National Treasury. Likewise when we roll our strategy 
we will pilot with certain provincial departments during 2001/02 financial year. All of these changes, at national level, must have 
occurred within the next 18 months in terms of National Cabinet decision.

Sub-Programme 3.3: Financial Management TrainingAfter a year of functioning with seconded staff, this programme has taken-off firmly. Next 
year is going to see a consolidation of this work. Its foci have been re-organised to include basic accounting and competency based 
assessment, management training, mentoring and internship and continued financial information systems training. This has expanded the work 
of the sub-division but at the same time has re-articulated itself into four meaningful pillars. These pillars are seen as integrated and 
systematically building a person ups the ladder of financial administration. In addition, the programme has facilitated PFMA training and 
awareness raising initiatives.Achievements for 2000/01In the current financial year the sub-programme managed to reach the following goals:

* Some posts of the sub-directorate were filled.
* 120 managers (deputy directors, directors and chief directors) from all departments were trained on the PF MA from March to October 2000.
* 47 Members of the Provincial Legislature and Public Entities were als trained on the PFMA.
* 90 Financial Administrators received training on the PFMA.
* 1137 financial administrators (including regions) were trained in the various financial information systems (FMS, Persal, PAS/Logis and 
Tendering Procedures).
* Basic Accounting and Competency-based Assessment (BASCA) project was successfully launched.
* BASCA 141 students participating in 6 - 12 months long course on, amongst others, Business Computing, Basic Principles of Financial 
Statements and Fundamental Accounting.
* Currently 21 officers selected from all departments are being trained as PFMA trainers.

Priorities for 2001/02 Next year our focus will, amongst other things, be:

* Setting up eight (8) training centres across the Province to service the new districts.
* 12 PFMA awareness workshops at district level to reach out at least 800 participants.
* Setting up a PFMA Programme Management Centre, which will act as a support base to the CFOs and Provincial Treasury.
* Holding an inter-provincial workshop on the best-practice in the implementation of the PFMA
* Enrolment of 300 students on Accounting skills from all departments and also provide bursaries for tertiary students.
* Training of 205 managers on &#145;Executive Training Programme which includes the following areas: financial management for non-
financial managers; project financing; internal auditing; introduction to accounting principles; integration of budgeting and planning; 
expenditure management; risk management; financing public-private partnerships; cash management and public banking.
* 1025 people (inside and outside government) will be trained on tendering processes.
* Piloting the Mentorship and Internship Project through public-private partnerships.
* Further development of internal training capacity.

We must, however, take this opportunity to welcome the injection of 10% of the skills levy into this programme. This resource will enable 
us to reach as many administrators as than we anticipated. We urge all departments to grab the opportunities presented by this but also to 
link the work we are doing in this programme with support and an incentive scheme for those members of staff who participate in the 
programme.Sub-programme 3.4: Financial ControlFinancial Control is about co-ordinating bookkeeping services, clearance of suspense accounts 
and forensic audit and investigations. Achievements for 2000/01 In the current year the sub-programme has:

* Separated the pension bank account from the PMG Account for quick detection of pension fraud and achieved weekly reconciliation of those 
accounts.
* Cracked the criminal syndicates (on pension fraud and payment to bogus suppliers) and secured the convictions and recovering of lost 
funds & properties gained through fraudulent activities.
* Reduced costs of government on Telkom and Eskom services by R1.1 million from April to September 2000 on detected ghost consumers.
* Telkom Interface with our financial system is in place and we are in the process of establishing a similar link with Eskom by 1 April 
2001.

Priorities for 2001/02In the next year we shall focus on:

* Clearing of old balances and closing of books by the end of April 2001
* Monthly reporting of consolidated suspense accounts position for the whole Province.
* Producing of unqualified consolidated financial statements.

Sub-programme 3.5: Pre-Audit and Salary AdministrationThe sub-programme regulates financial payment system in the provincial government and 
ensures that all provincial expenditure is in terms of the budget and is in accordance to Tender Board and Treasury regulations and 
directives.

Achievement for 2000/01 This programme has made the following strides in the current financial year:

* Devolved of batching, maintenance of batch registers to all regional offices, institutions and Head Offices. This was done after 
capacitating financial staff.
* Contributed towards reduction of uncleared suspense accounts and fraudulent activities;
* Reduced the number of personnel over 65 years of age to 644.

Priorities for 2001/02Its priorities next year will be:

* Completing the devolution of the batching and batch registers, and a submission system of financial records to the Documentation Centre 
for safe custody hand auditing purposes.
* Compliance with the 30 days payment period in accordance with Treasury Regulations and Directives.
* Increase security arrangements around the Pre-Audit and Data Capturing offices, thereby reducing fraud potential and access to them.

Programme 4. Support Services

Sub programme 4.1: ManagementThe Support Services Programme renders financial and human resource management, logistic and procurement 
services to the department.

Sub-programme 4.2: Finance and Auxiliary ServicesThe responsibility of this sub programme is to provide office and provisioning 
services.Achievements During 2000/01Its achievements in 2000/01 include:

* Initiating a separate billing system of telephone expenses for all departments.
* Training transport officers on all transport related matters.
* Transfer of Tribal and Trust Accounts function with funds amounting to R60 million to National Department of Justice with reconciliation 
of individual trust account for distribution to appropriate account holders.
* Transfer of TDRF function from National to be a Provincial competence has been approved by EXCO and currently awaiting presidential 
proclamation before a final decision on its devolution to the Province could be taken.
* Fill key posts of Superintendent General, two directors (Budget office and Provincial revenue services), Deputy director (SPU) and two 
assistant directors (SPUs).
* Of the 77 other posts that were advertised internally, 47 have been filled (some from people additional to the establishment).
* Establishment of the Special Programmes Unit (SPU) within the department and also accordingly staffed.

Priorities for 2001/02Our priorities for the next year are:

* Finding additional accommodation for the department as the existing space is very limited.
* Implementing and managing the new performance management system
* Implementation of Transformation Policies in line with provincial and national prescripts.

Sub programme 4.4 Special Programmes UnitThis unit was established on 1 January 2001. Main responsibilities are to coordinate youth, gender 
and disability issues in the department. This is one of the key achievements this year.Priorities for 2001/02Priorities for next year are 
to:

* Facilitate the research on situation of youth, women and people with disabilities so as to assess the relevance of the budgeted 
programmes.
* Assist in the designing and implementation of HIV/Aids Programmes to raise awareness.
* Commemoration of all important national and international days e.g. Youth Day, International Day of Disabled Persons, National Womens 
Day, World Aids Day
* Monitor the implementation of the Service Delivery Improvement Plan within the department.

Programme 5: Treasury Reserve

The purpose of this programme is to set aside funds for contingency purposes and also any budgeted surplus. It keeps allocations for 
strategic activities identified by Treasury and Cabinet Budget Committee. These allocations are intended to meet unforeseen and unavoidable 
expenses and provide a reserve to accommodate macro-economic uncertainty and any new spending priorities.

Achievements For the Last Year In the last year we have succeeded in reducing the Treasury Reserve from R1.1 billion to R140 million.

Priorities for 2001/02In the following year we shall focus on:

* Elimination of outstanding debts to almost zero;
* Efficiently manage the costs that results from the clearing of old balances from the previous financial years.

Conclusion

Colleagues, Comrades and members of the public here are our plans. These plans have been thoroughly explored in the department. Now its 
your turn to critically assess them and tell us whether we are indeed providing the leadership you expect. We have presented to you an 
integrated strategy for the year, which shows connection amongst programmes and interaction with other departments. Through these we shall 
infuse efficient and effective financial management. However, what drives us as a team is helping departments to reach their development 
goals that change the lives of the women in villages, the people infected and affected by HIV/AIDS, our youth and above all our children. 
Such is our commitment to the better life for all!!!

I thank you

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