Quarterly Reporting – Q4 of 2016/2017 Financial Year A presentation to the Portfolio Committee for Women in the Presidency The Parliament of the Republic of South Africa Quarterly Reporting – Q4 of 2016/2017 Financial Year The presentation provides summaries of financial management matters and results that were subjected to oversight by the Finance Committee and Audit Committee.

Financial Performance and Budget Management Financial Position. Table of contents Financial Performance and Budget Management Financial Position. Corporate Management. Risk Management, Audit and PFMA related matters. Annexures – slide 14 to 19

Legislative Framework Chapter 13 of the Constitution of South Africa, Act 108 of 1996 and the Public Finance Management Act of 1999 (as amended) advances for values which espouses openness and accountability in the allocation and use of state resources. Under Chapter 1 of the PFMA (The Act) the values are bolstered further by provisions stating that the object of the Act is to secure transparency, accountability and sound management of the resources The Framework for strategic planning and Annual Performance plans of 2010 propagates that operational budgets must be linked to the institutions strategic objectives and their respective legislated mandates Section 38 of the PFMA and related Treasury regulations promotes the integration of Risk Management practices into strategic planning and financial controls

Statement of Financial Performance Un-audited A deficit (R2,2 million; 2017) attributable to depreciation Additional resources for extra spending was covered by extra- allocation funding (Donations in the main).

Budget Management Total expenditure exceeded the allocation from NT by R5,2 million. Other income of R3 million counter-effected the overall over-spending, leaving a net R2, 2 million deficit at reporting date. There were savings on COE for R3 million due reduction in P-bonus provision (R1 m for each year) and vacancies that existed during the period , most of which have been subsequently filled. Unfavourable variances: Depreciation – R1,8 m Operating exp – R6 m due to Travel, report writing(20year review), etc.

69% of spending is in support of core legislation and main programmes in the APP. COE is linked to core work and accounts for 63% of the overall expenditure of which 79% (R37, 6 m) thereof is directly linked to legislation (CGE Act, PEPUDA).

Financial Performance & Budget management – Q4 For the 4th quarter a net surplus of R1,7 million was recorded – This was as a result of a reversal (favourable impact) of R2 million provision for performance bonus made in consideration of financial viability challenges noted during IY monitoring intervals. Key expenditure drivers remained COE, report writing, travel & accommodation. The results were also affected by adjustments ordinarily related to year-end procedures. Total Q4 spending wasR16,5 million (against allocation of R17,5 m) – resulting in R1 m saving, augmented by donor income to bring a net favourable budget deviation of R1,7 million. The saving (which in effect was caused by a reversal of R2m PB provision) effectively defrayed accumulated deficit from previous periods, culminating in a relatively smaller deficit (a product of cost containment efforts).

Financial Position Un-audited Although the position is solvent and going concern assumption still valid; financial viability going forward is challenged: Current assets are less than current liabilities by close to R1m – Liquidity weaknesses, the gradual effect of spending pressures on operating budget. The NA position is diminishing year after year and without CAPEX budget, the whole balance sheet strength will be negatively impacted in the medium term

Un-audited Year on year cash resources are reduced by payment to creditors, current spending on goods, services and employees. Cash resources reduced from R8 m in the previous year to R4,5 m by March 2017 – The cash remains less than Liabilities/debts owed by the CGE as at 31 March 2017.

Corporate Services SCM No material transactions undertaken during the quarter under review Consequence Management for Financial Misconduct as defined in the PFMA Incurrence of irregular expenditure – insurance premium paid exceeding R250, 000 threshold. Accommodation –procurement for alternative premises Braamfontein – Head Office – NDPW has requested a fresh Procurement Instruction due to miscommunication reportedly experienced by the department with its Gauteng Regional Offices. Such was issued by the CGE with anticipation for a speedy procurement Cape Town – NDPW has commenced with procurement – A report and Project Plan in this regard were formally received from NDPW Fleet Management Satisfactorily without any material deviation from consumption use & norms:

Audit & Risk Management - Action Plans RM – Section 38(1)(g) and 76(2)(e) of the PFMA During the quarter under review, risk assessment workshop was conducted amongst representative management, Provincial Coordinators and other key officials. Furthermore, a committee meeting was held during January 2017 to consider other RM, including progress made of action plans previously committed. In accordance with the prescripts ( NTR – 27.2.6 ) an internal audit plan was compiled based on the Risk Register for the 2017/2018 as determined above. The process also integrated RM considerations to the new APP (PFMA – s52 & NTR 29). Audit – PAA & PFMA Regularity audit by AGSA has commenced effective from 8 May 2018 – currently underway and planned to conclude by 31 July 2017.

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Annexures

Status & Stats - use and spending on vehicles

Professional services includes audit fees, legal fees, advertising and consulting services. Depreciation was not budgeted for – R1,8m for the year. Media outreach was mainly from donated funds – SABC PSA’s Travel expenditure contained to R5,7 m (similar to prior year) – Cost control measures. COE bigger contributor but mostly for service delivery