As at 31 December 2016/17 FINANCIAL YEAR Date: 24 March 2017 SPORT AND RECREATION PORTFOLIO COMMITTEE PRESENTATION ON FINANCIAL PERFORMANCE As at 31 December 2016/17 FINANCIAL YEAR Date: 24 March 2017 Mr. Alec Moemi Director General Sport and Recreation South Africa

BUDGET AND EXPENDITURE ANALYSIS AS AT 31 December 2016 1. EXECUTIVE SUMMARY The departmental financial performance as at 31 December 2016 are as follows: The overall spending is at R856.6 million which represent 83% of the total budget allocation out of a total budget of R1,026 billion. There is a 8% overspending in terms of arithmetic forecast of 75% as its equivalent to nine months. Spending on Compensation of employees is at 72% totalling R77 million out of a budget of R106.5 million There is a 3% under spending due to vacant posts of e.g. Director: School Sport which the Department has finalised the process of appointment (The Director started on the 1st January 2017). Other vacancies for junior and lower levels posts also contributed to the under spending. The department is in a process of filling all critical posts before the end of the current financial year. Expenditure on Goods and services is at 90% totalling R151.4 million out of a budget of R167.9 million. There is a 15% overspending due to the fact that all departmental projects were rolled out and most paid during the past quarters (Q2 and Q3).

BUDGET EXPENDITURE ANALYSIS AS AT 31 December 2016 Transfer payments’ spending is at 84% totalling R624.9 million out of a budget of R749.8 million, The acceptable arithmetic forecast of 75%. Transfers to provinces were scheduled 15%, 35%, 35%, and 15% per quarter respectively hence the overspending on Transfers. Households (Leave gratuities and Bursaries (Non employees)) payments also contributed to the overspending. Payment for Capital Assets expenditure is at 65% totalling R1.4 million out of a budget of R2.1 million. The expenditure is expected to increase once the invoices for computers are received and payment effected by SCM

2. OVER ALL DEPARTMENTAL SUMMARY EXPENDITURE vs BUDGET PER ECONOMIC CLASSIFICATION AS AT 31 December 2016 2. OVER ALL DEPARTMENTAL SUMMARY Economic Classification Budget Expenditure Available Budget Exp in % Current Payments 274,590 228,515 46,075 83% Compensation of Employees 106,596 77,083 29,513 72% Goods and Services 167,994 151,432 16,562 90% Transfers and Subsidies/Provinces 749,843 626,203 123,640 84% Provinces 555,708 464,611 91,097 Public Entities 33,012 27,523 5,489 Federations 161,123 132,788 28,335 82% Households - 1,281 (1,281) Capital Assets 2,167 1,402 765 65% Payment for financial assets 565 (565) TOTAL 1,026,600 856,685 169,915 Department have applied to National Treasury to shift funds within Transfers from Federations to cover the overspending on Households (Ministerial Bursary programme). The programme is budgeted for accordingly for the coming MTEF period going forward.

EXPENDITURE vs BUDGET PER ECONOMIC CLASSIFICATION AS AT 31 December 2016 3. PROGRAMME 1 - ADMINISTRATION Economic Classification Budget Expenditure Available Budget Exp in % Administration   Current Payments 130,612 92,183 38,429 71% Compensation of Employees 75,174 56,850 18,324 76% Goods and Services 55,438 35,333 20,105 64% Transfers and Subsidies 83 272 (189) 328% Departmental Agencies and Acc 68 15 82% Households - 204 (204) Capital Assets 2,167 1,380 787 Machinery and Equipment TOTAL 132,862 93,835 39,027 Overspending on household (Leave discounting) will be off set with a virement at year end.

EXPENDITURE vs BUDGET PER ECONOMIC CLASSIFICATION AS AT 31 December 2016 4. PROGRAMME 2 – ACTIVE NATION Economic Classification Budget Expenditure Available Budget Exp in % Active Nation   Current Payments 54,519 84,606 (30,087) 155% Compensation of Employees 11,651 6,106 5,545 52% Goods and Services 42,868 78,500 (35,632) 183% Transfers and Subsidies 594,216 503,211 91,005 85% Provinces and Municipalities 555,708 464,611 91,097 84% Non-Profit Institutions 38,508 - 100% Households 92 (92) TOTAL 648,735 587,817 60,918 91% The Under spending in compensation is due to vacant post that are currently being filled, e.g. Director: School Sport (Director – started on the 01st of January 2017). Overspending on household (Leave discounting) will be off set with a virement at year end

EXPENDITURE vs BUDGET PER ECONOMIC CLASSIFICATION AS AT 31 December 2016 5. PROGRAMME 3 – WINNING NATION Economic Classification Budget Expenditure Available Budget Exp in % Winning Nation   Current Payments 59,907 21,956 37,951 37% Compensation of Employees 4,380 2,265 2,115 52% Goods and Services 55,527 19,691 35,836 36% Transfers and Subsidies 31,242 26,753 4,489 86% Departmental Agencies and Acc 21,896 16,422 5,474 75% Households - 985 (985) Non-Profit Institutions 9,346 100% TOTAL 91,149 48,709 42,440 53% The total spending rate is at 53%, under spending by 22%. Under spending on compensation is mainly due to unfilled vacancies. Overspending on household (Ministerial Bursary) will be off set with a virement at year end.

6. PROGRAMME 4 – SPORT SUPPORT EXPENDITURE vs BUDGET PER ECONOMIC CLASSIFICATION AS AT 31 December 2016 6. PROGRAMME 4 – SPORT SUPPORT Economic Classification Budget Expenditure Available Budget Exp in % Sport Support   Current Payments 13,270 23,162 (9,892) 175% Compensation of Employees 7,543 10,298 (2,755) 137% Goods and Services 5,727 12,864 (7,137) 225% Transfers and Subsidies 124,302 95,967 28,335 77% Departmental Agencies and Acc 11,033 - 100% Non-Profit Institutions 113,269 84,934 75% Payments for Capital Assets 22 (22) TOTAL 137,572 119,151 18,421 87% The spending rate on Transfers and Subsidies is at R 95.9 million which represent 77% of the budget. Transfers to provinces were scheduled 15%, 35%, 35%, and 15% per quarter respectively hence the overspending on Transfers.

EXPENDITURE vs BUDGET PER ECONOMIC CLASSIFICATION AS AT 31 December 2016 7. PROGRAMME 5 – INFRASTRUCTURE SUPPORT Economic Classification Budget Expenditure Available Budget Exp in % Infrastructure Support   Current Payments 16,282 6,608 9,974 41% Compensation of Employees 7,848 1,564 6,284 20% Goods and Services 8,434 5,044 3,390 60% Payments for Financial Assets 565 (565) TOTAL 7,173 9,109 44% The Programme spent R7 million out of budget of R16.2 million which represent a rate of 44% for the period of nine months which is less than the nominal rate of 75% by 31%, the expenditure is expected to increase once invoices for out door gyms are received and processed. The Under spending in compensation is due to vacant post that are still to be filled e.g. Chief director and Director infrastructure.

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