SRSA BUDGET PRESENTED TO PORTFOLIO COMMITTEE 22 MARCH 2011 COMMITTEE ROOM 1 SRSA

RESOURCE CONSIDERATIONS The spending focus over the MTEF period will continue to be on promoting mass participation in sport and recreation, mainly through the mass sport and recreation participation programme grant, and on the development of sport at various levels by supporting school sport, club development and sport federations. Furthermore the transformation charter should completed in order to roll out institutional mechanisms projects. This includes facilities, academies, sport councils and coaching. SRSA

The 2011 Budget allocates an additional R205.7 million RESOURCE CONSIDERATIONS The 2011 Budget allocates an additional R205.7 million over the MTEF period, of which: R7.6 million is for improved conditions of service R136 million is for increased support to national sport federations R40 million is for increased municipal and accommodation charges R16.5 million is for new office accommodation R5.5 million is for increased operational costs at Boxing South Africa. Although some of the strategic goals could be pursued through voted funds and the conditional grant an increase in the baseline allocation to SRSA is required to achieve all the strategic goals. SRSA

BUDGET ALLOCATIONS’ TRENDS Expenditure declined between 2007/08 from R5.billion to R1.3 billion in 2010/11 at an average annual rate of 37.1 per cent. A significant portion of this decrease is attributed to the completion of the upgrading and construction of stadiums for the 2010 FIFA World Cup. Over the MTEF period, total expenditure is projected to decrease at an average annual rate of 9.9 per cent to R918 million in 2013/14. The mass participation programme conditional grant allocation has increased at an average annual rate of 30 per cent between 2007/08 and 20010/11 due to the inclusion of school sport from 2006/07 and 2010 legacy projects from 2007/08.

DEPARTMENT OF SPORT & RECREATION SA ECONOMIC CLASSIFICATION BUDGET TREND DEPARTMENT OF SPORT & RECREATION SA   R'000 ECONOMIC CLASSIFICATION 2007/2008 2008/2009 2009/2010 2010/2011 2011/2012 2012/2013 2013/2014 Compensation 43,425 54,517 61,303 75,805 79,861 84,039 88,367 Goods & services 142,272 168,827 147,139 111,931 142,649 142,947 151,821 Public Entities 10,520 7,546 9,860 12,310 18,411 16,070 16,954 Non-profit institutions 49,797 47,758 57,336 71,317 103,695 129,936 150,546 Mach & eqpmnt 2,942 4,051 4,818 5,115 6,042 5,680 7,101 International Organ - 15,000 40,000 Theta 43 57 60 64 68 72 Provinces (DORA) 194,003 293,655 402,250 426,385 451,968 474,566 500,667 Municipalities 4,604,999 4,295,000 2,168,664 512,566 Total 5,048,000 4,871,411 2,866,430 1,255,489 802,690 852,306 915,528 SRSA

BUDGET TREND GRAPHICAL EXCL MUNICIPALITIES SRSA

BUDGET TREND GRAPHICAL MUNICIPALITIES SRSA

ECONOMIC CLASSIFICATION BUDGET MTEF PER ECONOMIC CLASSIFICATION The original budget of SRSA for the current year was R1.245 billion. The funding increased by R9.9 million to R1.255 during the adjustment estimates. The increase is made up of R7.9 million roll-overs and R2.0 million for annual salary adjustments. The break down of the budget is as follows ECONOMIC CLASSIFICATION 2010/2011 R'000 2011/2012 R'000 2012/2013 R'000 2013/2014 R'000 Compensation 75,805 79,861 84,039 88,367 Goods & services 111,931 142,649 142,947 151,821 Provinces (DORA) 426,385 451,968 474,566 500,667 Municipalities 512,566 - Public Entiries 12,310 18,411 16,070 16,954 Theta 60 64 68 72 Non-profit institutions 71,317 103,695 129,936 150,546 International Organisations 40,000 Mach & eqpmnt 5,115 6,042 5,680 7,101 Total 1,255,489 802,690 852,306 915,528 SRSA

ECONOMIC CLASSIFICATION BUDGET ALLOCATION EXCLUDING MASS PARTICIPATION DORA GRANT The budget allocated to SRSA has dropped significantly since the completion of the 2010 projects. The budget decrease from R1.2 billion in 2010/11 to R802k in the 2011/12. Included in this figure is an amount of R452k which must be transferred to provinces. The baseline budget of SRSA is therefore R277. ECONOMIC CLASSIFICATION 2010/2011 R'000 2011/2012 R'000 2012/2013 R'000 2013/2014 R'000 Compensation 75,905 79,861 84,039 88,367 Goods & services 111,931 142,649 142,947 151,821 Public Entities 12,310 18,411 16,070 16,954 Non-profit institutions 71,317 103,695 129,936 150,546 Mach & eqpmnt 5,115 6,042 5,680 7,101 Total 276,578 350,658 378,672 414,789 SRSA

GRAPHICAL VIEW OF THE MTEF ALLOC EXCL DoRA SRSA

GRAPHICAL VIEW OF THE BUDGET EXCL DoRA SRSA

MTEF BUDGET PER PROGRAMME Administration 88,928 110,727 112,560 121,536 Sport Support Services 104,347 158,636 182,874 208,377 Mass Participation 473,210 502,131 524,260 550,997 International Liaison 22,198 22,995 24,282 25,717 Facilities 6,701 8,201 8,330 8,901 2010 Unit 560,105 - Total 1,255,489 802,690 852,306 915,528 SRSA

BUDGET PER PROGRAME CURRENT 2010/2011 SRSA

MTEF BUDGET ALLOCATION PER PROGRAMME SRSA

DONOR FUNDING Project Amount Youth Development Through Football by EU and German Government (GTZ) – South Africa 2009 - 2012 5.0 m Euros Youth Development Through Football by EU and German Government (GTZ) – Rest of Africa 2009- 2012 1.0 m Euros Youth Development Against Violence Through Sport - German Government (kfw) 2010 -2012 4.5 m Euros SRSA

Funding to SA Sports Awards Funding to Facilities POTENTIAL FUNDING REQUEST Funding to NF’s Funding to SA Games Funding to SA Sports Awards Funding to Facilities Funding for new Organogram Funding for new Office Accommodation

Staffing at Corporate Services Capacity for M&E and MPP CONCERNS RAISED BY TREASURY Staffing at Corporate Services Capacity for M&E and MPP School Sport Policy and role of DBE Monitoring of Public Entities (esp. BSA)

AUDIT QUERIES COMPARISON Audit Issues 2006/2007 2007/2008 2008/2009 2009/2010 Basis of qualification 13 3 1 Issues in the report 242 175 104 75 SRSA