PRESENTATION TO THE SPORT AND RECREATION PORTFOLIO COMMITTEE ON FINANCIAL PERFORMANCE QUARTER 4 OF THE 2015/16 FINANCIAL YEAR Date: 24 May 2016 Mr. L Mere – Chief Financial Officer Sport and Recreation South Africa

1.EXECUTIVE SUMMARY The departmental financial performance at the 31 March 2016 are as follows: o The overall spending is at R979.9 million out of a budget of R980.8 which represent 99.9% of the total budget allocation. This is within the norm in terms of arithmetic forecast 100% as its equivalent to twelve months. o Spending on Compensation of employees is at 99% totalling R93.7 million out of a budget of R94.3. There is 1% under spending due to vacant posts of e.g. Director: Facilities. Other vacancies for junior and middle management positions as well as lower levels posts also contributed to the under spending. During the 2015/16 financial year management has approved advertising of all prioritised vacant posts. o The department will be filling some critical vacant posts in the next financial year 2016/17 as the organisational review process has been completed. The filling of vacant posts will also ensure that the department curb under-spend in this economic classification. The department has drastically improved compared to the 3% underspend in the previous financial year. BUDGET AND EXPENDITURE ANALYSIS AS AT 31 March 2016

BUDGET EXPENDITURE ANALYSIS AS AT 31 March 2016 o Expenditure on goods and services is at 99% totalling R165.5 million out of a budget of R o Transfer payments’ spending is 101% totalling R718.6 million out of a budget of R This resulted in an overspend of R2 million which is a result of households items. o Payment for capital assets expenditure is at 93% totalling R2.013 million out of a budget of R2.167.

EXPENDITURE vs BUDGET PER ECONOMIC CLASSIFICATION AS AT 31 March OVER ALL DEPARTMENTAL SUMMARY Economic ClassificationBudgetExpenditure Available BudgetExp in % Current Payments 262,111259,2892,82999% Compensation of Employees94,305 93, % Goods and Services167,806165,4982,30899% Transfers and Subsidies/Provinces 716,601718,608 -2,007100% Provinces 533, % Public Entities 30,363 30, % Federations 153, % Households - 2,026 -2,026 Capital Assets 2,1672, % TOTAL 980,879979, %

EXPENDITURE vs BUDGET PER ECONOMIC CLASSIFICATION AS AT 31 March PROGRAMME 1 - ADMINISTRATION Economic Classification BudgetExpenditure Available BudgetExp in % Administration114,507114, % Current Payments112,261112, % Compensation of Employees 64,36969,315-4,946108% Goods and Services47,89242,9174,97590% Transfers and Subsidies % Departmental Agencies and Acc % Households Capital Assets 2,1672, % Machinery and Equipment 2,167 2, % Software & Intangible Assets-3-3

EXPENDITURE vs BUDGET PER ECONOMIC CLASSIFICATION AS AT 31 March PROGRAMME 2 – ACTIVE NATION Economic Classification BudgetExpenditure Available BudgetExp in % Active Nation652,207652, % Current Payments82,37081, % Compensation of Employees11,2927,575 3,71767% Goods and Services71,07873,892 -2,814104% Transfers and Subsidies569, , % Provincies and Municipalities 533, % Households Non-Profit Institutions 36, % Capital Assets Machinery and Equipment - - -

EXPENDITURE vs BUDGET PER ECONOMIC CLASSIFICATION AS AT 31 March PROGRAMME 3 – WINNING NATION Economic Classification BudgetExpenditure Available BudgetExp in % Winning Nation57,15256, % Current Payments28,52127,1241,39795% Compensation of Employees 3,8062,4691,33765% Goods and Services24,71524, % Transfers and Subsidies 28,63129, % Departmental Agencies and Acc 19, % Non-Profit Institutions 8, % Households

EXPENDITURE vs BUDGET PER ECONOMIC CLASSIFICATION AS AT 31 March PROGRAMME 4 – SPORT SUPPORT Economic Classification BudgetExpenditure Available BudgetExp in % Sport Support154,017153, % Current Payments35,96335, % Compensation of Employees 12,74912, % Goods and Services23,21423, % Transfers and Subsidies 118,054118, % Departmental Agencies and Acc 10, % Households Non-Profit Institutions 107, %

EXPENDITURE vs BUDGET PER ECONOMIC CLASSIFICATION AS AT 31 March PROGRAMME 5 – INFRASTRUCTURE SUPPORT Economic Classification BudgetExpenditure Available BudgetExp in % Infrastructure Support2,9962, % Current Payments2,9962, % Compensation of Employees 2,089 1, % Goods and Services %