Presentation to the Portfolio Committee BUDGET 2014/15 Presentation to the Portfolio Committee 08 July 2014 Vote 20 Budget 2014/15 SRSA

BUDGET 2014/15 The figures below reflects the budget available for Sport and Recreation SA in the year 2014/15. 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 programmes; Youth Camps, School Sport Championships, Indigenous games and Big Walks in the next three years. The funding for these is via the conditional grant which increases from R497.2 million in 2013/14 to R525.6 million in the 2014/15. 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

BUDGET – COMMENTS 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 allocated R44.7 million in 2013/14 and this increased to R60.2 in 2014/15.   The department offering enabling mechanisms to support sport and recreation; Rolling out multi-purpose sport facilities and outdoor gyms with a budget of R4.0 million in 2013/14 increasing to R10.4 million in the current year. Supporting the sport federation with the amount of R97.0 million in the year 2013/14 and increasing to R113.3 million in the outer year. SRSA

AUDITED OUTCOMES 2011/12 TO 2013/14 AND BUDGET 2014/2015 2012/13 2013/14 2014/15 R '000 Administration 101 600 100 300 102 000 131 300 Active nation 513 400 539 500 601 900 615 200 Winning Nation 103 100 292 500 229 500 91 300 Sport Support 88 300 117 500 109 600 122 200 Infratsructure 4 000 4 300 10 400 Total 810 400 1 054 100 1 047 000 970 400 4 SRSA SRSA

AUDITED OUTCOMES 2011/12 TO 2013/14 AND BUDGET 2014/2015 Continued 2012/13 2013/14 2014/15 R '000 Current Payments 193 600 219 700 231 900 269 400 Compensation of employees 73 100 73 700 63 600 103 000 Goods and Services 120 500 146 000 168 300 166 400 Administration fees 1 500 100 800 Advertising 7 800 25 400 4 000 5 700 Monor Assets 1 000 400 1 400 Audit cost: External 4 300 5 200 3 500 5 100 Bursaries: Employees 200 700 Catering 1 800 2 700 1 200 1 700 Communication 3 400 4 500 4 700 Computer services Consultants Contractors 30 700 40 800 79 200 65 300 5 SRSA SRSA

AUDITED OUTCOMES 2011/12 TO 2013/14 AND BUDGET 2014/2015 Continued 2012/13 2013/14 2014/15 R '000 Agency services 200 Entertainment Inventory: Fuel, oil and gas Inventory: Medicine 100 300 Inventory: Other supplies 1 100 1 700 Consumable: Stationery 1 300 1 400 2 500 Operating leases 6 600 700 14 600 19 000 Property payments 3 700 2 800 3 100 Transport: Dept activity 2 400 1 000 500 2 300 Travel and subsistence 36 400 33 600 28 100 36 500 Training and development 1 200 Operating payments 4 100 8 100 3 300 Venues and facilities 12 200 15 400 18 500 10 100 6 SRSA SRSA

AUDITED OUTCOMES 2011/12 TO 2013/14 AND BUDGET 2014/2015 Continued 2012/13 2013/14 2014/15 R '000 Transfers and subsidies 615 800 833 200 812 900 698 800 Provinces 452 000 592 800 497 600 525 600 Municipalities 123 200 120 000 Departmental agencies 21 800 19 000 20 600 26 500 International organisations 16 700 Non-profit institutions 125 300 221 300 174 700 146 600 Households 100 Payments for capital assets 1 200 2 200 Machinery and equipment 1 000 Software 200 Total 810 600 1 054 100 1 047 000 970 400 7 SRSA SRSA

AUDITED OUTCOMES 2011/12 TO 2013/14 AND BUDGET 2014/2015 Continued 2012/13 2013/14 2014/15 R '000 Agency services 200 Entertainment Inventory: Fuel, oil and gas Inventory: Medicine 100 300 Inventory: Other supplies 1 100 1 700 Consumable: Stationery 1 300 1 400 2 500 Operating leases 6 600 700 14 600 19 000 Property payments 3 700 2 800 3 100 Transport: Dept activity 2 400 1 000 500 2 300 Travel and subsistence 36 400 33 600 28 100 36 500 Training and development 1 200 Operating payments 4 100 8 100 3 300 Venues and facilities 12 200 15 400 18 500 10 100 8 SRSA SRSA

Division of Revenue Act MASS PARTICIPATION PROVINCIAL ALLOCATIONS Province 2012/13 Division of Revenue Act 2013/14 2014/15 R’000 Eastern Cape 66 056 61 334 64,895 Free State 34 371 38 832 40,318 Gauteng 73 930 88 269 94,915 Kwa-Zulu Natal 91 122 79 883 85,435 Limpopo 55 733 56 529 59,446 Mpumalanga 39 883 44 772 46,959 Northern Cape 27 404 30 806 31,450 North West 36 497 41 596 43,503 Western Cape 44 644 55 570 58,711 469 640 497 591 525,632 9 SRSA SRSA

Graphical overview of Allocations per programme SRSA 10 SRSA

Analaysis of Allocations per Classification Compensation of employees 103 100 10.6% Goods and Services 166 400 17.1% Provinces 525 600 54.2% Departmental agencies 26 500 2.7% Non-profit institutions 146 600 15.1% Capital Expenditure 2 200 0.2% Total 970 400 11 SRSA SRSA

Graphical overview of Allocations per Classification SRSA 12 SRSA

COMMENTS ON PROGRMME 1: ADMINISTRATION 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.   SRSA

COMMENTS ON PROGRMME 1: ADMINISTRATION (continued) 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.   The lease for office accommodation constitutes 7 per cent of the budget between and is expected to remain stable as department will be extending the lease until a Sport House can be financed.  The department will be 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

Office of the Chief Financial Officer 14 900 14 500 19 900 ADMINISTRATION Administration 2011/12 2012/13 2013/14 2014/15 R '000 Ministry 28 400 30 600 26 800 20 400 Management 13 700 14 200 15 400 18 600 Strategic Support 5 000 4 900 5 600 6 600 Corporate Services 34 400 34 600 42 900 44 200 Office of the Chief Financial Officer 14 900 14 500 19 900 Office Accommodation 5 400 2 200 19 600 21 700 101 800 100 200 124 800 131 400 SRSA

COMMENTS ON PROGRMME 2: ACTIVE NATION 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. An average of 85 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.   SRSA

COMMENTS ON PROGRMME 2: ACTIVE NATION (continued) 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 South African national school sport championship. 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

Provincial Sport Support and Coordination 452 000 469 600 497 600 ACTIVE NATION Active Nation 2011/12 2012/13 2013/14 2014/15 R '000 Programme Management 400 200 2 300 2 600 Active Recreation 900 1 000 Community Sport 48 000 43 200 81 900 53 800 School Sport 12 200 25 600 9 600 32 200 Provincial Sport Support and Coordination 452 000 469 600 497 600 525 600 513 500 539 500 592 400 615 200 SRSA

COMMENTS ON PROGRMME 2: WINNING NATION The spending focus over the medium term will be on providing scientific support to athletes as reflected in the Scientific Support sub-programme. In this period, the sub-programme will receive an additional allocation of R13.3 million for the transfer to the South African Institute for Drug-Free Sport. The additional funds are to assist the institute in ensuring that South Africa complies with the World Anti-Doping Agency code.   Expenditure on contractors in the Scientific Support sub-programme grew significantly from 2010/11 to 2013/14, due to the department intensifying support for elite athletes through high performance centres in preparation for major events over this period, including the 2012 Olympic Games. SRSA

COMMENTS ON PROGRMME 3: WINNING NATION (continued) The fluctuations in the transfers to non-profit institutions are due to once-off allocations of R84 million in 2012/13 to host the 2013 Africa Cup of Nations, and R36 million in 2013/14 for the 2014 African Nations Championship. As a result, spending in the Major Events sub-programme fluctuates between 2010/11 and 2013/14.   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. As part of Cabinet approved budget reductions, the Recognition Systems sub-programme expenditure was reduced by R3.4 million over the medium term. The impact of this reduction on service delivery will be minimised as private sector donors are brought in to augment funding for the recognition of performances. SRSA

Programme Management: 1 700 1 800 1 900 2 000 WINNING NATION Winning Nation 2011/12 2012/13 2013/14 2014/15 R '000 Programme Management: 1 700 1 800 1 900 2 000 Scientific Support 38 300 48 600 44 700 60 200 Major Events Support 43 100 224 900 160 300 10 300 Recognition Systems 20 000 17 100 21 900 18 800 Total 103 100 292 400 228 800 91 300 SRSA

COMMENTS ON PROGRMME 4 : SPORT SUPPORT The spending focus over the medium term will be on supporting recognised sport federations through transfers to non-profit institutions in the Sport and Recreation Service Providers sub-programme. These transfers constitute 83.6 per cent of the programme’s allocation over the medium term and will ensure that 60 sport federations are supported in each year of the MTEF period.   The International Liaison sub-programme is projected to have a negative average annual growth over the medium term due to the implementation of efficiency measures in international travel, which include smaller delegations being sent to international events. SRSA

Programme Management: Sport Support 2 900 3 000 1 900 2011/12 2012/13 2013/14 2014/15 R '000 Programme Management: Sport Support 2 900 3 000 1 900 International Liaison 4 600 4 700 3 400 2 400 Sport and Recreation Service Providers 80 800 109 900 111 700 117 900 TOTAL 88 300 117 500 118 200 122 200 SRSA

COMMENTS ON PROGRMME 5: INFRASTRUCTURE SUPPORT The spending focus over the medium term will be on providing 18 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 49.5 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 24 SRSA

INFRASTRUCTURE SUPPORT Infrastruture Support 2011/12 2012/13 2013/14 2014/15 R '000 Programme Management: Infrastructure Support 100 1 000 1 900 2 000 Sport and Recreation Facility Management 1 400 4 600 5 200 Sport and Recreation Facility Planning 2 500 3 200 2 800 Total 4 000 4 300 9 300 10 400 SRSA

THANK YOU 26 SRSA SRSA