PORTFOLIO COMMITTEE MEETING DATE: 10 October 2012 Venue: Parliament, Cape town

BOXING SOUTH AFRICA Mandate as per Boxing Act 11 of 2001: To provide for a new structure for professional boxing in the Republic; to ensure the effective and efficient administration of professional boxing in the Republic; to recognise amateur boxing; to create synergy between professional and amateur boxing; to establish a Boxing Commission known as Boxing SA; to promote interaction between associations of boxers, managers, promoters, trainers and officials and Boxing SA; and to provide for matters connected therewith

BOXING SOUTH AFRICA Vision To be a leading sport code in South Africa and a world class boxing authority Mission The effective and efficient administration and regulation of professional boxing Values P – Professionalism L - Leadership A - Accountability D - Diversity

ACHIEVEMENTS The timeous appointment of the new board of Boxing SA on 28/08/2011. The holding of a Board Induction Workshop and 4 board meetings 2011/2012 financial year. The successful establishment of committees. i.e. Events Sanctioning Committee, Ratings Committee, Disciplinary Committee and Management Committee. Audit Committee interviews and appointment by end October.

ACHIEVEMENTS continued The development Action Plan to rectify AGSA’s findings for the 2010/2011 AGSA report resulting in improved report 2012/2012. Timeous submission of strat plan and all quarterly reports. Milestone in the history of Boxing SA Road-show to present strategic plan and solicit input from stakeholders

ACHIEVEMENT continued Adoption of MOU with SABC with final signing on the recent SABC board meeting Adoption of functional structure formulation, to consist of the Director: Communication and Marketing; Director: Compliance and Monitoring; Director: Corporate Services and a Chief Financial Officer. appropriate licensing of boxing stakeholders in line with the provisions of the South African Boxing Act No.11 of 2001.

Achievement s continued 77 tournaments promoted throughout the country 17 were female bouts Province Tournaments EC 38 Gauteng 21 KZN 11 Limpopo 6 WC Free State 2 Mpumalanga 1

Challenges SRSA grant not adequate to meet legislative requirements There are no financial resources available to finance strategic projects as per Strategic plan 2012 -2017 and strategic posts. (e.g Baby champs, training, rural development, infrastructure development e.t.c) Representation in international conventions to leverage BSA’s presence in the world and continent

CHALLENGES continued Provincial and local government support with the exception of EC and KZN. (WC not interested at all) Private strategic partnership with corporate sponsors

Annual Report 2011/2012 Qualifications Reason Action Plan Trade and other payables (opening balance) No supporting documentation due to lack of proper financial administration in prior years Follow a process of write-off. Currently at the final stage of sending negative confirmations. Trade and other receivables (opening balance)

Annual Report 2011/2012 Emphasis of matter Reason Action Plan Significant uncertainties Contingent liabilities arising from pending lawsuits. The CEO is busy trying to resolve the issues to avoid the possible liability. Restatement of corresponding figures It is uncertain why the statement for the insurance asset had an opening balance that was different from the previous years closing balance. AGSA audited the closing balance as accurate in the previous year. To ensure that the opening balance and closing balance correspond in the current year. Going concern There is still a risk that the entity may not be able to go on business considering the actual net deficit position. SRSA and NT increased the annual grant this year and over the MTEF period. BSA board and CEO are working on generating more revenue for the entity. SABC contract in process of finalization.

Annual Report 2011/2012 Legal requirements Reason Action Plan Performance information Indicators are not SMART New board appointed in the middle of the year, decided to create a new strategic plan 2012-2017 since half the year had already passed. The risks have been addressed in the new strategic plan. One issue stills remains is there is no financial resources available to meet strategic objectives. Hence sourcing funds. Audit committee New Board wished to appoint new audit committee. Process was not complete as at 31 March 2012. The process is at the interview stage now. Internal audit No revenue available to fund internal audit in the 2011/2012 financial year. Internal audit team at SRSA will perform the internal audit function in 2012/2013. the head of audit has met with BSA already.

BSA CREDITOR ANALYSIS Major creditors & balances: Creditor Description 31-Mar-11 31-Mar-12 SARS Boxers PAYE, VAT, UIF 8 604 497 Auditor-General SA External audit balances for the last 2 years 755 162 Trade payables Balances owing to promoters per tournament 878 051 177 464 Board fees Outgoing board for current & prior years 324 960 Audit committee fees 36 304 TOTAL   10 598 974

BSA EXPENDITURE ANALYSIS 31-Mar-11 31-Mar-12 % diff Reasons Employee cost↑ 2 859 562 3 959 480 28% Appointment of CEO, staff benefits Depreciation ↓ 155 409 100 373 35% Assets reached end of useful lives and not in use Finance costs↓ 1 561 752 189 018 88% Settlement of long outstanding creditors General expense↓ 5 812 049 4 416 543 24% Conservative spending TOTAL 10 388 772 8 665 414 17% Total drop in expenditure Reflects the affect of proper financial management & administration Achieved through monthly finance reports, risk assessments and action plans

Other provincial grants SRSA grant (R5 052 000) Sponsorship (R0) REVENUE 2012/2013 Sanctioning Fees - 30/09/2011 (R588 000) License Fees – 30/09/2011 (R220 000) Other provincial grants (R1 000 000) Forfeit fees 30/09/2011 (R7 000)

BSA REVENUE ESTIMATES SRSA grant 2011/2012 2012/2013 2013/2014 2014/2015 Approved grant 2 307 000 2 946 000 3 108 000 3 294 000 Additional grant *7 805 000 2 106 000 3 306 000 4 464 000 Total 10 112 000 5 052 000 6 414 000 7 758 000 Sanctioning fees 1 434 256 1 600 000 1 700 000 1 800 000 Licence fees 394 775 500 000 550 000 600 000 Other grants 1 060 000 1 000 000 - Total Revenue 13 001 031 8 152 000 8664 000 10 158 000 *Used to settle long outstanding creditors SARS & AGSA old board and audit committee members that were not paid. All additional funding are used to fill in gaps for day to day expenditure and fill significant vacant posts. No approved funds available to meet strategic objectives.

BOXING SA ORGANISATIONAL STRUCTURE MINISTER OF SPORT AND RECREATION SA HON. MR. FIKILE MBALULA DEPUTY MINISTER OF SPORT AN RECREATION HON. GERT OOSTHUIZEN BSA BOARD CEO MOFFAT QITHI PA to CEO (VACANT) CFO (OUTSOURCED: Financial Management Consultant) DIRECTOR OF OPERATIONS LOYISO MTYA (ACTING CEO) DIRECTOR: COMMUNICATIONS & MARKETING (VACANT) FINANCIAL MANAGER TUMELO KEKANA HR MANAGER (VACANT) BOXING TECHNICAL CO-ORDINATOR NOMSA MDHLULI IT & STATISTICS OFFICER SKHUMBUZO MOTHA TOURNAMENTS & OFFICE ASSISTANT ABRAM KAMBULE PROVINCIAL MANAGERS ACCOUNTS ADMINSTRATOR VERQUELENE JACOBS RECEPTIONIST LILLIAN DE WEE ACCOUNTS CLERK (VACANT) GENERAL ADMINISTRATIVE ASSISTANT MAJORIE THEBE

BSA main goals – MTEF period Generation of additional revenue - sponsorships Appointment of permanent CFO – shortlisting is in progress – 2012/2013 Filling in significant vacant posts Clean audit reports

THE END. THANK YOU!