Chief Financial Officer Sport and Recreation South Africa PRESENTATION TO THE PORTFOLIO COMMITTEE ON SPORT AND RECREATION ON PROJECTED EXPENDITURE AND REVENUE OVER THE MTEF Date: 17 April 2017 Mr. Lesedi Mere Chief Financial Officer Sport and Recreation South Africa

OVERVIEW OF THE PRESENTATION BUDGET 2018/19 MTEF OVERVIEW OF THE PRESENTATION The figures below reflects the budget available for Sport and Recreation SA in the year 2018/19. These have not taken into consideration the actual cost implications to rollout the overall NSRP as approved.   To meet the requirement of citizens access to sport and recreation activities the department is rolling out the following major programmes; Youth Camps, School Sport Championships, Indigenous games and Big Walks, etc. The funding for these is via the conditional grant. The expenditure on the transformation of the sport sector is done by implementation of development projects which is also part of the sport development grant above. SRSA

OVERVIEW OF THE PRESENTATION - CONTINUED BUDGET 2018/19 MTEF OVERVIEW OF THE PRESENTATION - CONTINUED Currently department is identifying talented athletes and support them to achieve international success. This is done in partnership with recognized sporting institutions.   The department offering enabling mechanisms to support sport and recreation. Rolling out multi-purpose sport facilities and outdoor gyms. Supporting the sport and recreation bodies. SRSA

AUDITED OUTCOMES AND BUDGET 2018/2019 MTEF PROGRAMMES Audited Outcomes Un-Audited Outcome Budget MTEF 2015/16 2016/17 2017/18 2018/19 2019/20 2020/21   R '000 Administration 114.4 117.3 120.0 142.3 150.1 158.4 Active nation 652.2 684.0 716.3 696.8 735.7 777.8 Winning Nation 56.5 62.7 64.2 79.8 84.4 89.2 Sport Support 153.9 147.1 152.0 158.1 168.0 177.6 Sport Infrastructure Support 2.8 12.5 9.2 13.8 15.5 16.5 Total 979.9 1,023.6 1,061.7 1,090.8 1,153.8 1,219.5 4 SRSA

Graphical overview of Allocations per programme SRSA

AUDITED OUTCOMES AND BUDGET 2018/2019 MTEF- CONTINUED ECONOMIC CLASSIFICATIONS AUDITED OUTCOMES Un-Audited Outcome Budget MTEF 2015/16 2016/17 2017/18 2018/19 2019/20 2020/21   R '000 Current Payments 256.1 270.1 265.7 278.6 296.4 315.2 Compensation of 93.8 101.3 101.1 111.5 120.1 129.1 Employees Goods and Services 162.3 168.8 164.6 167.0 176.3 186.1 Transfer Payments 718.6 749.4 793.0 809.8 854.9 901.7 Payment for Capital Assets 5.2 3.5 2.8 2.4 2.5 2.6 Payment for Financial Assets - 0.6 TOTAL 979.9 1,023.6 1,061.7 1,090.8 1,153.8 1,219.5 SRSA

Graphical overview of Allocations per Economic Classification SRSA

PROGRMME 1: ADMINISTRATION The purpose of the Programme is to provide strategic leadership, management and support services to the department. The spending focus over the medium term will be on providing corporate and other support services to the department, which accounts for the dominance of the Corporate Services sub- programme, and providing for the department’s accommodation needs. Thus, the most significant items of expenditure in the programme are compensation of employees, travel and subsistence, and operating leases. Expenditure on travel and subsistence is mainly to provide for trips to and from Parliament and international travel to meetings, sport events and conventions of the United Nations Educational, Scientific and Cultural Organisation, and the African Union Sports Council meetings taking into consideration cost saving measures.   SRSA

PROGRMME 1: ADMINISTRATION The lease for office accommodation is expected to remain stable as department has extended the lease until a Sport House can be financed.  The department has reprioritised from the external audit function to expand the internal audit function to extend services to federations, public entities and provinces on the management of the mass participation and sport development conditional grant. SRSA

PROGRMME 1: ADMINISTRATION Sub-Programmes Audited Outcomes Un-Audited Outcome Budget MTEF 2015/16 2016/17 2017/18 2018/19 2019/20 2020/21   R '000 Ministry 30.0 27.9 28.5 30.3 32.0 Management 12.9 13.4 20.8 22.2 23.4 Strategic Support 7.3 7.6 6.2 7.9 8.5 9.0 Corporate Services 41.8 38.1 42.2 43.3 45.8 48.6 Office of the Chief Financial Officer 16.9 19.8 18.5 23.7 24.9 Office Accomodation 5.5 10.5 12.3 18.4 19.5 20.5 Total 114.4 117.3 120.0 142.3 150.1 158.4 SRSA

PROGRMME 1: ADMINISTRATION ECONOMIC CLASSIFICATIONS AUDITED OUTCOMES Un-Audited Outcome Budget MTEF 2015/16 2016/17 2017/18 2018/19 2019/20 2020/21   R '000 Current Payments 112.2 115.4 116.2 139.9 147.5 155.7 Compensation of 69.3 74.3 72.6 80.6 84.9 89.7 Employees Goods and Services 42.9 41.0 43.6 59.3 62.6 66.0 Transfer Payments 0.2 0.3 0.9 0.1 Payment for Capital Assets 2.0 1.6 2.8 2.3 2.5 2.6 Payment for Financial Assets - TOTAL 114.4 117.3 120.0 142.3 150.1 158.4 SRSA

PROGRMME 2: ACTIVE NATION The purpose of the Programme is to support the provision of mass participation opportunities in sport and recreation. The spending focus over the medium term will be on promoting mass participation in sport and recreation through the mass participation and sport development conditional grant, which supports school sport, club development, sporting hubs, sport academies and sport councils and accounts for the dominance of expenditure on transfers to provinces in the programme. SRSA

PROGRMME 2: ACTIVE NATION An average of 90 per cent of the programme’s total allocation over the medium term will be spent on the grant in the Provincial Sport Support and Coordination sub-programme. The management and oversight exercised by the department in respect of the grant partially accounts for the increased expenditure on travel and subsistence, which falls under the Community Sport and School Sport sub-programmes.   School Sport remains a priority for the department as it is the bedrock for sport development in the country, as reflected in the growth in expenditure in the School Sport sub-programme over the MTEF period. The main activity in this sub-programme is the national school sport championships. Staged annually, the event explains the relative significance of expenditure on travel and subsistence and venues and facilities within expenditure on goods and services. SRSA

PROGRMME 2: ACTIVE NATION Sub-Programmes Audited Outcomes Un-Audited Outcome Budget MTEF 2015/16 2016/17 2017/18 2018/19 2019/20 2020/21   R '000 PRG MNG: Active Nation 4.8 2.3 1.0 4.2 4.4 4.7 Active Recreation - 1.2 1.3 1.4 Community Sport 100.8 99.0 109.0 72.1 76.3 81.8 School Sport 13.3 27.3 20.5 31.9 33.7 36.0 Provincial Sport Support and Coordination 533.2 555.4 585.8 587.4 620.0 653.9 Total 652.2 684.0 716.3 696.8 735.7 777.8 SRSA

PROGRMME 2: ACTIVE NATION ECONOMIC CLASSIFICATIONS AUDITED OUTCOMES Un-Audited Outcome Budget MTEF 2015/16 2016/17 2017/18 2018/19 2019/20 2020/21   R '000 Current Payments 81.5 88.2 90.0 66.6 70.5 76.2 Compensation of 7.6 8.3 9.6 9.0 11.2 Employees Goods and Services 73.9 79.9 80.4 58.3 61.5 65.0 Transfer Payments 570.7 593.9 626.3 630.2 665.2 701.6 Payment for Capital Assets - 1.9 Payment for Financial Assets TOTAL 652.2 684.0 716.3 696.8 735.7 777.8 SRSA

Division of Revenue Act MASS PARTICIPATION PROVINCIAL ALLOCATIONS Province 2018/19 Division of Revenue Act 2019/20 2020/21 R’000 Eastern Cape 67 020 70 994 75 125 Free State 95 986 100 839 105 883 Gauteng 85 482 91 457 97 300 Kwa-Zulu Natal 98 739 104 864 111 599 Limpopo 67 679 71 490 75 450 Mpumalanga 46 463 48 408 50 798 Northern Cape 31 319 32 086 32 883 North West 41 855 43 814 45 850 Western Cape 52 843 56 064 59 044 587 386 620 016 653 932 SRSA SRSA

PROGRMME 3: WINNING NATION The purpose of the Programme is to support the development of elite athletes. The spending focus over the medium term will be on providing scientific support to emerging and elite athletes in the Operation Excellence Programme (OPEX) as reflected in the Scientific Support sub-programme. The Programme also support the Ministerial Sports Bursary awarded to learners from Grade 8 until they complete their high school education. These are identified through the school sport programme and placed in the sport focus schools . The Department transfers funds to the South African Institute for Drug-Free Sport (SAIDS) to assist the institute in ensuring that South Africa complies with the World Anti-Doping Agency code.   SRSA

PROGRMME 3: WINNING NATION The Recognition Systems sub-programme was introduced in 2011/12. Expenditure in this sub-programme from refers to financial incentives paid to athletes for their achievements at international and national events. SRSA

PROGRAMME 3 - WINNING NATION Sub-Programmes Audited Outcomes Un-Audited Outcome Budget MTEF 2015/16 2016/17 2017/18 2018/19 2019/20 2020/21   R '000 PRGM MNG:Winning Nation - 2.4 2.6 2.7 Scientific Support 33.9 39.1 43.6 44.7 47.3 50.0 Major Events Support 8.7 0.3 2.1 12.8 13.5 14.4 Recognition Systems 13.9 23.3 18.5 19.9 21.0 22.1 Total 56.5 62.7 64.2 79.8 84.4 89.2 SRSA

PROGRMME 3: WINNING NATION ECONOMIC CLASSIFICATIONS AUDITED OUTCOMES Un-Audited Outcome Budget MTEF 2015/16 2016/17 2017/18 2018/19 2019/20 2020/21   R '000 Current Payments 27.1 27.6 29.0 38.3 40.7 43.0 Compensation of 2.5 2.8 2.7 3.7 4.1 4.4 Employees Goods and Services 24.6 24.8 26.3 34.7 36.6 38.6 Transfer Payments 29.4 35.1 35.2 41.5 43.7 46.2 Payment for Capital Assets - Payment for Financial Assets TOTAL 56.5 62.7 64.2 79.8 84.4 89.2 SRSA

PROGRMME 4 : SPORT SUPPORT The purpose of the Programme is to develop and support an integrated support system to enhance the delivery of sport and recreation. The spending focus over the medium term will be on supporting recognised sport and recreation bodies through transfers to non-profit institutions in the Sport and Recreation Service Providers sub-programme. These transfers constitute 52.0 per cent of the programme’s allocation over the medium term and will ensure that sport and recreation bodies are supported in each year of the MTEF period.   The International Relations sub-programme will continue to build and strengthen international bilateral relationships to support sport and recreation development in South Africa by executing exchange programmes with international partners. SRSA

PROGRAMME 4: SPORT SUPPORT Sub-Programmes Audited Outcomes Un-Audited Outcome Budget MTEF 2015/16 2016/17 2017/18 2018/19 2019/20 2020/21   R '000 PRGM MNG:Sport Support 3.2 3.5 4.3 4.9 5.6 6.0 International Relations 5.3 6.5 6.1 5.4 6.4 Sport and Recreation Service Provider 145.4 137.1 141.6 147.8 156.4 165.2 Total 153.9 147.1 152.0 158.1 168.0 177.6 SRSA

PROGRMME 4: SPORT SUPPORT ECONOMIC CLASSIFICATIONS AUDITED OUTCOMES Un-Audited Outcome Budget MTEF 2015/16 2016/17 2017/18 2018/19 2019/20 2020/21   R '000 Current Payments 35.6 27.0 21.4 20.0 22.2 23.7 Compensation of 12.4 13.9 13.1 13.7 15.5 16.7 Employees Goods and Services 23.2 13.2 8.3 6.3 6.7 7.0 Transfer Payments 118.3 120.1 130.6 138.1 145.8 153.9 Payment for Capital Assets - Payment for Financial Assets TOTAL 147.1 152.0 158.1 168.0 177.6 SRSA

PROGRMME 5: SPORT INFRASTRUCTURE SUPPORT The purpose of the Programme is to regulate and manage the provision of sport and recreation facilities. The spending focus over the medium term will be on providing outdoor gyms to rural areas that have no sport facilities; completing the national facilities audit; and compiling a national facilities plan. This planned expenditure is reflected in the Sport and Recreation Facility Management sub-programme, which constitutes 59.0 per cent of total programme expenditure over the medium term. The provision of outdoor gyms to rural areas also explains the expenditure on contractors across the seven-year period. SRSA

PROGRMME 5: SPORT INFRASTRUCTURE SUPPORT Sub-Programmes Audited Outcomes Un-Audited Outcome Budget MTEF 2015/16 2016/17 2017/18 2018/19 2019/20 2020/21   R '000 PRGM MNG:Infrastructure support - 0.3 2.5 2.7 Sport and Recreation Facility Management 0.7 8.5 3.1 7.9 9.3 9.9 Sport and Recreation Facility Planning 2.1 4.0 5.8 3.4 3.7 3.9 Total 2.8 12.5 9.2 13.8 15.5 16.5 SRSA

PROGRMME 5: SPORT INFRASTRUCTURE SUPPORT ECONOMIC CLASSIFICATIONS AUDITED OUTCOMES Un-Audited Outcome Budget MTEF 2015/16 2016/17 2017/18 2018/19 2019/20 2020/21   R '000 Current Payments 2.8 12.0 9.2 13.8 15.5 16.5 Compensation of 2.0 2.1 3.2 5.2 6.5 7.0 Employees Goods and Services 0.8 9.9 6.0 8.6 9.0 9.5 Transfer Payments - Payment for Capital Assets Payment for Financial Assets 0.6 TOTAL 12.6 SRSA

TRANSFERS TO PUBLIC ENTITIES Budget MTEF 2018/19 2019/20 2020/21   R '000 Boxing South Africa 12.3 13.0 13.7 South African Institute for Drug-Free Sport 24.3 25.7 27.1 Total 36.6 38.7 40.8 SRSA

DEPARTMENTAL REVENUE COLLECTIONS   Audited Outcomes Un-Audited Outcome Budget MTEF 2015/16 2016/17 2017/18 2018/19 2019/20 2020/21 R '000 Rental Parking covered and open 39.0 40.0 39.2 41.0 42.0 Commission on Insurance and Garnishee 21.0 23.0 26.8 26.0 Replacement of lost office Property - 1.0 2.0 Interest, dividends and rent on land 1.9 3.0 Sales of Assets <R5000 Transactions in financial assets and liabilities 344.0 33.0 84.4 270.0 Total 406.0 97.0 153.1 340.0 341.0 343.0 SRSA

DEPARTMENTAL REVENUE COLLECTIONS Departmental Receipts The Department’s revenue generating capacity is limited and revenue collected consists mainly of parking fees from officials, and recoveries of expenditure or payments with regards to claims for recovery of goods or services. Other revenue sources include miscellaneous interest from debt recoveries and commission received for commission on insurance and garnishee. Total departmental own receipts show an increase from R97 000 in 2016/17 to R153 100 in 2017/18 which represent a 57.0% growth. SRSA

THANK YOU 30 SRSA SRSA