PORTFOLIO COMMITTEE PRESENTATION ON THE 2nd QUARTER 2015/16 FINANCIAL REPORT (In-Year –Monitoring / IYM) Date: 16 February 2016

DEPARTMENTAL FINANCIAL PERFORMANCE The appropriation for 2015/16 is R 187 102 million with the actual expenditure of R 94 052 million for the period ending September 2015. The expenditure is 50% of the total appropriation. Included in the budget allocation & actual expenditure of Programme 2 is the CGE at R 67 689 million. The net budget of the department excluding CGE is R119 313 million. Programme Appropriation Actual Expenditure 30 September 2015 Available Budget % Spent   R`000 % Administration 80 451 42 582 37 869 53 Social, Political and Economic Participation and Empowerment 87 230 41 457 45 773 48 Research, Policy Coordination and Knowledge Management 6 170 1 767 4 403 29 Monitoring, Evaluation and Outreach 13 151 8 246 4 905 63 Total 187 002 94 052 92 950 50

DEPARTMENTAL FINANCIAL PERFORMANCE

FINANCIAL PERFORMANCE PER ECONOMIC CLASSIFICATION The overall performance per economic classification depicted in the table below: Goods & Services of R49,2 million includes ring fenced amount for office accommodation and audit fees of R14,660 million & R4, 073 million respectively. The net budget of G& S is R30, 565 million. A virement of R3,5 million to augment spending pressures of Goods & Services. All the transfers to CGE were done timely. The under-spending in Capital Payments is earmarked for ICT & Security projects. Economic Classification Appropriation Actual Expenditure 30 September 2015 Available Budget % Spent   R`000 % Compensation of Employees 66 521 31 492 35 029 47 Goods and Services 49 298 27 854 21 444 57 Transfers and Subsidies 67 689 34 256 33 433 51 Capital Payments 3 494 450 3 044 13 Total 187 002 94 052 92 950 50

FINANCIAL PERFORMANCE PER ECONOMIC CLASSIFICATION

OVERALL FINANCIAL NARRATIVE Revenue Revenue collection as at 30 September 2015 is R16 thousand from commission on insurance and garnishes. Payment of Invoices within 30 days From July to Sept 945 invoices were received, 873 were paid within 30 days and 72 invoices were paid outside of 30 days. Delays in payment of invoices outside of 30 days was mainly due to verification processes by end users. Consequence management in a form warning letters have since been issued to officials who fail to comply

OVERALL FINANCIAL NARRATIVE Fruitless & wasteful Expenditure No fruitless and wasteful expenditure was reported for the period under review Irregular Expenditure – Total irregular expenditure for period under review is R 2,057 million HR transactions – R 196 thousand The department incurred irregular expenditure on compensation of employees for full time / permanent officials appointed at higher salary levels without the posts being evaluated at higher levels, in previous financial year/s. SCM transactions – R 1,861 million The irregular expenditure is due to partial / non-compliance with SCM process, Deviation pending approval of R1,4 million was included in interim for period ending September as irregular expenditure for accountability purposes.

PROGRAMME 1: FINANCIAL PERFORMANCE The net budget for the Programme is R 61,718 million excluding ring fenced funds for office accommodation & Audit fees of R14,660 million and R4,073 million. Sub-Programme Appropriation Actual Expenditure 30 September 2015 Available Budget % Spent   R`000 % Ministry 23 923 11 536 12 387 48 Departmental Management 6 865 4 755 2 110 69 Corporate Services 21 889 17 271 4 618 79 Financial Management 13 114 4 723 8 391 36 Office Accommodation 14 660 4 297 10 363 29 Total 80 451 42 582 37 869 53

PROGRAMME 2: FINANCIAL PERFORMANCE The budget of the Programme includes the budget of CGE of R 67,689 million, leaving a net budget R 19,541 million. The budget for Sub-Programmes with no expenditure will be moved to the relevant Sub-Programmes at year end. Allocation of budget was done to accommodate the new budget programme structure. Sub-Programme Appropriation Actual Expenditure 30 September 2015 Available Budget % Spent   R`000 % Management: Social, Political and Economic Participation and Empowerment 3 105 1 518 1 587 49 Social and Related Functions 7 436 6 092 1 344 82 Justice and Public Order 3 000 - Governance and Administration Economic Empowerment Commission for Gender Equality 67 689 33 846 33 843 50 Total 87 230 41 456 45 774 48

PROGRAMME 3: FINANCIAL PERFORMANCE The budget for the Programme is R 6,170 million for the year. The budget for Sub-Programmes with no expenditure will be moved to the relevant Sub-Programmes at year end. Allocation of budget was done to accommodate the new budget programme structure. Sub-Programme Appropriation Actual Expenditure 30 September 2015 Available Budget % Spent   R`000 % Management: Research, Policy Coordination and Knowledge Management 600 441 159 74 Research Management 3 369 1 326 2 043 39 Policy Analysis and Coordination 1 601 - Information and Knowledge Management Total 6 170 1 767 4 403 29

PROGRAMME 4: FINANCIAL PERFORMANCE The budget for the Programme is R 13,151 million for the year. The over- spending on Sub-Programme Outreach Initiatives will be defrayed from saving s within the main division in line with the prescripts governing virement. Sub-Programme Appropriation Actual Expenditure 30 September 2015 Available Budget % Spent   R`000 % Management: Monitoring, Evaluation and Outreach 600 - Monitoring and Evaluation 5 933 2 510 3 423 42 Stakeholder Coordination 3 000 1 573 1 427 52 Outreach Initiatives 3 618 4 162 -544 -15 Total 13 151 8 245 4 906 63

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