Vote 8 A presentation to the Portfolio Committee of Parliament of SA Budget linked to the Annual Performance Plan for the financial period : 1 April 2013 to 31 March

Vote 8 Vote 8 Outline 1.Background legislative framework 2.Purpose of presentation 3.The CGE Budget in Brief 4.The budget over the MTEF period – An overview /14 allocations–APP costing, Analysis, comparatives & trends 6.Financial management and the PFMA 2

Legislative Framework Chapter 13 of the Constitution of South Africa provides that ” money may be withdrawn from the National revenue Fund only in terms of an appropriation by an Act of Parliament, or as a direct charge……..” The Framework for strategic plan and Annual Performance plans of 2010 propagates that operational budgets be linked to the institutions strategic objectives The object of the PFMA is to secure transparency, accountability and sound management of the resources…..Chapter 1 of the Act These are citations from the governing authorities/mandate/prescripts 4 Vote 8 3

Introduction The purpose of this presentation is therefore to provide an outline to the Committee on : A funding background & detailed spending plans set to advance the Commission’s Legislative mandate for the 2013/2014 period Highlight spending patterns and trends over the medium term and indicate linkages to strategic plans and APP Related financial management issues 4 Vote 8 Vote 8

A brief analysis of the CGE budget 5

The nature and structure of the CGE budget 6 Operations are run primarily through 3 main programmes : Governance, Corporate Support and Main Service?/Core program The top three spending drivers are: ▫Compensation of Employees 71% ( We are a service driven & human intensive) ▫Professional Services 5% ( Litigations, audit fees, etc) ▫Travel& Accommodation, event management & media – 11% (outreach & visibility are at the core our strategy) ▫Reports production and printing – 3% ( All work published after each research study/investigation ▫ Telecommunications, Courier Services – 4% (Offices country-wide) These make up 94% of the total spending thus only 6% (+/- R4.3 m) is relatively variable. This is strictly prioritized to cover All office overheads – Less flexibility This is a historical as well as projected pattern of spending even in the outer years of the medium term plan Vote 8 Vote 8

Medium term Allocation per program 7 Vote 8 Vote 8 51% is spent on core program Programme 2013/ / / / /18 %/prgm COMMISSIONERS: GOVERNANCE & SUPPORT % CORPORATE SUPPORT SERVICES % SERVICE DELIVERY PROGRAM % Grand Total Rate of growth per annum6.8%6.6%5.3% 5.1% Growth mainly due to cost of living adjustments realising higher than inflation – 6.6 % for

Programme expenditure per economic classification 8 Vote 8 Vote 8 Programme 2013/ / / / /18 COMMISSIONERS: GOVERNANCE & SUPPORT CORPORATE SUPPORT SERVICES SERVICE DELIVERY PROGRAM Total on goods & services Programme 2013/ / / / /18 COMMISSIONERS: GOVERNANCE & SUPPORT CORPORATE SUPPORT SERVICES SERVICE DELIVERY PROGRAM Total on Cost of Employees Grand total of allocated funds

Detailed expenditure over the medium term 9 Cls 2013/ / / / /18 Bank Charges CAPEX Compensation of Employees Computer Servicing, Internet & Website Courier Services Employee Assistance Program Media Outreach Office Cleaning, Maintenance, Plants & Security Office Consumables Printing & Stationery Professional Services Report writing & Printing Materials Telecommunication Expenses Travel, Accomodation and Related Expenditure Venues, Catering & Event Management Training and development Grand Total Vote 8 Vote 8

Comparatives; Past, present and projected spending 10

Spending over the MTEF period Vote 8 Vote 8 Objectives/Program : in thousand of Rands Past outcomesEstimatedMedium-term estimate Projections Outcome 2009/ / /122012/132013/142014/152015/162016/172017/18 CORE Service Delivery Strategic Objective 1 Creation of enabling gender equality legislation Strategic Objective 2 Protection and Promotion of gender rights Strategic Objective 3 Monitoring compliance to treaties Strategic Objective 4 Commissioners and Corporate Support Commissioners office Chief executive Officers office Finance and administration Human Resources Department InformationTechnology Communication Department Capital Expenditure Total

Spending over the MTEF period...2 Since 2011/2012, spending has shifted from administration to core program – budgeted for over 50% of the allocation Current year (2012/2013) results, reflects an under- spending of R2m (or 4% of the original allocation) The outer MTEF projections are incrementally determined, on the basis of inflation parameters from National Treasury 12 Vote 8 Vote 8

– Operational Budget 13

Consolidated operational budget –  Core program: from the salaries bill of R45 m, 55% is earmarked for main program (R25m)  Overall COE  (71% of total budget), of which 39 % is spent on main program  G&S  (29% ) where main program constitutes 41%  Main program makes up 51% of total budget Vote 8 Goods & Services Compensation of employees Grand totals CEO HR Finance Communications IT Corporate Servies Commissioners Total non-core program Core programme Required funding Available funding

2013/14 Programme budget  R63, 1 million The Core service deliver sub-programme – 51% (R32 million) of the total budget (R63, 1 million) Commissioners programme -17% (R10, 7 million) Corporate Services – 32% (R20 million) Capital expenditure – No resources available (0%) 15 Quarterly reporting

Funding situation The allocation has only been earmarked for operational activities in terms of the APP Some strategic options in the APP could not be funded from the available allocation Very critical Capital Expenditure requirements remain unfunded; estimated at R8.7 m ▫IT infrastructure is obsolete and old (Requires R6m) ▫Vehicle fleet has aged – (R2.2 m required) ▫Office furniture & equipment – (R500k) 16 Vote 8 Vote 8

– Budget per strategic objctive 17

Strategic objective 1 Data Sub-Strategies Goods& Services - Core program Compensation of Employees Goods & Services - Administrative overheads Grand totals 1. To monitor and evaluate the policies and practices of the public and private sector institutions and provide reports to Parliament To initiate and/or review legislation that impact on gender equality To conduct periodic performance assessments of Government departments, political parties, state institutions, CSOs, and any private sector organisations, on the implementation of legislation and policies that impact on gender equality To evaluate the functioning of the national justice facilities for gender discrimination To convene policy dialogues with identified policy makers on findings and recommendations contained in CGE reports Grand Total Vote 8 Vote 8

This SO deals with the creation of an enabling legislative framework The SO consumes 14% of the total budget, driven by travel and accommodation, printing of reports in addition to the allocated overheads Employee Cost accounts for 25% of COE for main program or R6m 19 SO 1 – Key drivers of spending Vote 8 Vote 8

Strategic objective 2 20 Sub-Strategies Goods& Services - Core program Compensation of Employees Goods & Services - Administrative overheads Grand totals 1. To investigate complaints of gender rights violations and identify appropriate redress per Sect. 11(1)(e)of the CGE Act To develop and implement coordinated programme to promote gender equality To initiate interventions for sustainable development and promotion of gender equality in cultural and religious organisations To collaborate with organs of state, civil society and other institutions to develop, protect, promote and attain gender equality Grand Total Vote 8 Vote 8

SO 2 – Key drivers of spending The SO focuses on the protection and promotion of gender rights. Therefore Education and awareness activities are planned Travel, Accommodation, venues and related R3m) will be used to carry-out targets in the APP COE for officers across line functions will account for about 65% of cost in the main program 21 Vote 8 Vote 8

Strategic objective 3 Sub-Strategies Goods& Services - Core program Compensation of Employees Goods & Services - Administrative overheads Grand totals 1. To conduct periodic reviews of state compliance with obligations under the conventions, covenants and charters and to report an a regular basis to Parliament To engage national, regional and international bodies on state compliance with conventions, covenants and charters acceded to or ratified and to make recommendations for improvements Grand Total Vote 8 Vote 8

SO 3 – Key drivers of spending This SO is set to monitor the state compliance to international instruments, in which multi-disciplinary teams are used to research, monitor and develop reports for Parliament and multi-lateral institutions The expenditure of R2.8 m constitutes 9% of the budget for the main program. This is largely made out of by salaries (personnel time) 23 Vote 8 Vote 8

Strategic objective 4 Sub-Strategies Goods& Services - Core program Compensation of Employees Goods & Services - Administrative overheads Grand totals 1. To establish and maintain a well-defined Commissioners oversight governance structure for execution of the mandate delegated to the Chief Executive Officer, with clear roles, and responsibilities To develop a financial management strategy that promotes effective, efficient and economic utilisation of resources as well as accountability To improve, align and maintain innovative ICT infrastructure & systems that support the CGE organisational objectives To develop a comprehensive HR Strategy that creates an enabling environment for employee wellbeing, talent attraction, development & retention To develop a long term funding model for the CGE that includes funding from the donor agencies To implement the communications strategy Grand Total Vote 8 Vote 8

SO 3 – Key drivers of spending The Governance, administration and management is anchored on this SO: Commissioners, CEO and Support functions carry out activities to ensure accountability, efficiencies, effectiveness of operations R31m or 49% is earmarked for spending under this SO ▫Salaries –R19 m ▫G&S – R12 m 25 Vote 8 Vote 8

Financial Performance – 1 April’12 to 31 Dec

Other Financial Management Matters Risk Management – risk assessments were made for each strategic objectives Risk treatment plans – develop to ensure that targets are met, efficiently, economically and effectively APP implementation plans have been developed to ensure effective control Cashflow management in place for continuous availability of the planned resources Additional funding: Retention of surplus, Fund raising options are in the APP and other plans 27 Vote 8 Vote 8

end ▫ Thank you 28