Presentation to the Portfolio Committee for Women in the Presidency On the Annual Report for 2014/2015 Period and The Annual Financial Statements and other PFMA related matters 1 14 October 2015

Table of contents Introduction and Purpose The Annual Financial Statements period ending 31 March 2015 – Statement of Financial Position – Statement of Financial Performance – Statement of changes in Net assets – Statement of Cash flow Disclosures and general financial management matters – Corporate Services – Governance : Risk management, internal controls and Audit outcomes 2

Introduction and purpose The purpose of this presentation is to update the Portfolio Committee on the affairs and financial activities of the Commission as contemplated by section 181(5) of the Constitution of South Africa, Act 108 of Furthermore, Section 40 of the PFMA prescribes that the Annual report and Annual Financial Statements must be tabled in Parliament a month after the issuance of an audit report by the Office of the Auditor General. Consistent the values and principles of accountability and transparency deriving from the Constitution and espoused by all prescripts and practices, the Commission tables an account on the use of allocated funds for the financial period ending 31 March The funds allocated by Parliament through the Appropriation Act of

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6 Financial Position - notes The financial health of the Commission is sound measured by its solvency and liquidity status. Between the previous year and 2014/2015 period, solvency has increased whilst liquidity situation is diminishing mainly because of the outlay of investment in property, plant and equipment. There is a switch between current and non-current assets – current and cash ratio at 99% and anticipated to fall in the new year. Most creditors are from non-exchange transactions - R10.2 m of the R13.4 m in total liabilities as at 31 march Net asset were at R4.8 million (2014; R3.8 m), an increase accounted for by current operating results at R968, 067 surplus.

7 Notes Out-flows in ordinary course of operations were R1, 6 m in excess of cash in-flows. The inverse was true in the previous financial year. Further outflows for R4, 5 million were recorded as disbursement for f\investment in fleet in the main. The figure is materially higher than previous period (R373, 839) Net cash & cash equivalents reduced by 32% from R19.4 m at the financial year ending 31 March 2014.

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Notes 9 Further conditional grant recorded - R5 m in 2015 only Other income in mainly donations and interest income Further conditional grant recorded - R5 m in 2015 only Other income in mainly donations and interest income Total expenditure higher than budget and prior period mainly due to extra-ordinary activities such as Gender Summit + the general effects of inflation

10 Budget 2014/2015 Strategic Objective 1 – R8.1m Strategic Objective 2 – R18m Strategic Objective 3 – R14.2m Strategic Objective 4 – R29.6m Approved Budget =R67.2m Final Budget = R69.9m Adjustment budget – not transferred from fiscus – R2.7m Budget 2014/2015 Strategic Objective 1 – R8.1m Strategic Objective 2 – R18m Strategic Objective 3 – R14.2m Strategic Objective 4 – R29.6m Approved Budget =R67.2m Final Budget = R69.9m Adjustment budget – not transferred from fiscus – R2.7m Commissioners’ R9.5m Main/Core Service Delivery R40.7m Corporate Services R19.7m Excess income recorded due to donations and conditional grants recognised during current period. Overall spent above the allocation and adjusted budget Some spending activities funded for from donations There was generally spending pressures against the baseline Budget Comparatives

All includes shared expenses at corporate level, mainly depreciation Key contributors to spending exceeding budget :- – Summit ( Communications) – ICT professional services – Salary increase higher than anticipated at budgeting stage 11 Programme COMMISSIONER S: GOVERNANCE & SUPPORT CORPORAT E SUPPORT SERVICES SERVICE DELIVERY PROGRAM Total Actuals CY Total Adjusted Annual budget LocationDepartment Actuals CY Head OfficeALL CHIEF EXECUTIVE OFFICER COMMISSIONERS COMMUNICATIONS FINANCE & ADMINISTRATION HUMAN RESOURCES INFORMATION TECHNOLOGY LEGAL PUBLIC EDUCATION & INFORMATION RESEARCH Ofice of the COO Head Office Total Provincial Office EASTERN CAPE FREE STATE GAUTENG KWAZULU NATAL LIMPOPO MPUMALANGA NORTH WEST NORTHERN CAPE WESTERN CAPE Provincial Office Total Grand Total Uneven numbers due to periods where there were vacancies e.g. Free State Western Cape province includes Parliamentary Unit, explaining the deviation from average The general gap from budget is accounted for by cost of living adjustment realising higher than the budget estimate Spending figures

12 Programme COMMISSIONERS : GOVERNANCE & SUPPORT CORPORATE SUPPORT SERVICES SERVICE DELIVERY PROGRAM Total Actuals Current Year Total Actuals Prior Year Total Adjusted Annual budget Location Economic Classification Actuals Current Year Head OfficeCompensation of Employees Depreciation & Amortisation Goods & Services Head Office Total Provincial Office Compensation of Employees Goods & Services Provincial Office Total Grand Total % is budgeted and spent at HQ compared to 64% in 2013/2014. In aggregate, 52% was spent on Core programme Spending figures

Expenditure for the year – Budget comparatives Summary results by economic classification 13 A.2014/15 Actual spending as % of total19%29%52%100% B.2014/15 Actual spending as % of budget20%30%55%105% C. 2014/15 Actual spending as % of prior actuals23%34%62%119% A.Spending distribution per programme was consistent with the budget allocation, where service delivery programme spending was at 52% of the total expenditure in 2014/2015 period. B.2014/2015 spending exceeded tthe adjusted budget by 5% ( R73, 7 m v R69,9 m). Key exception was on the core service delivery at 3 % higher than the budget set aside. C. Expenditure for 2014/2015 was higher than recorded in 2013/2014 by 19%. Key to this increase is the effect of inflation and other extra-ordinary projects; Gender Summit, ICT infrastructure professional services. Programme COMMISSIONERS CORPORATE SUPPORT SERVICES SERVICE DELIVERY PROGRAM Total

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15 Salary bandNumber of employ ees Personnel expenditure cost Percentage of total personnel Average personnel cost per employee Skilled (Level ) % Highly Skilled (6 - 8) % Highly Skilled Supervision (9 - 12) % Senior Management ( ) % Commissioners % Total permanent % Temporary and interships % Grand total % Total establishment of 110 personnel permanent employment levels remained steady ( 98 previous year v 95 in 2014/2015 ) Overall vacancy rate against the establishment of 14% (15 Positions, page 105 of AR) at estimate/implicit total cost of R6,3 million) Total establishment of 110 personnel permanent employment levels remained steady ( 98 previous year v 95 in 2014/2015 ) Overall vacancy rate against the establishment of 14% (15 Positions, page 105 of AR) at estimate/implicit total cost of R6,3 million)

Employment numbers Notes About 50% of the salary bill ( R23m/R46m) and head count (46/95) is for the highly skilled The highly skilled band is mainly for positions directly linked to Core service delivery programme Across all bands core service delivery actual total cost was recorded for 2014/15 at R28 m (or 60% of total COE) 16 Salary bandNumber of employees per band as at 1 April 2014 Appointment s and Transfers within the Commission Terminatio ns and Transfers out of the Commissi on Number of employees per band as at 31 March 2015 Skilled (Level ) Highly Skilled (6 - 8) Highly Skilled Supervision (9 - 12) Senior Management ( ) Commissioners Temporary & Internships Total

Annual Leave Notes Annual leave contributed R1m into the COE expense for 2014/15 up from R558, 000 in the previous period The average leave taken was 18.4 days per annum against 22 days year grant per person Leave days not taken and cost of living adjustment contributed to the increase in COE as shown above Higher level employees, management and Commissioners took less leave days during the period. All leave forms such as Sick Leave within reasonable norms – No issues were noted during the period 17 Salary bandNumber of employees who have taken leave Total days taken Average per employe e Skilled (Level ) Highly Skilled (6 - 8) Highly Skilled Supervision (9 - 12) Senior Management ( ) Commissioners Total permanent Temporary and interships Grand total

Employment equity, Training, development and performance management The Commission is comprised of 64% female and is 100% previously disadvantaged across the establishment. CGE lacks and lagging on disability representation at under 2%. 22 officials trained equitably across all demographics ( by gender and age) Training expenses were R613, 100 in 2014/2015 compared to R in the previous period Of a total of 18 terminations of employment during 2014/2015 period, 2 were dismissals and 9 resignations whilst the rest were due to expiry of contracts. Performance bonus of R1,4 million was paid out to 54 officials during the financial year but in lieu of 2013/2014 performance period. Pending the finalisation of assessments for the 2014/2015 performance cycle, a provision of R1.69 million is included in the reported figures. 18

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Communications Unit – high-lights The units activities were in the main focussing on support to the core service delivery programme apart from and in addition to the corporate communications activities. The unit comprised of three officials and incurred a total expenditure of R3,9 million. Of which about R900, 000 was financed by donations (SABC – Gender Summit and 16 Days of Activism) and GCIS (Gender summit). – in-kind services recorded at fair value Media platforms were utilised to leverage the reach of communities also in substitute to the traditional channels – Radio, social Media, Television and print as and where relevant. Cost efficiency and service delivery effectiveness attested by coverage statistics. Partnerships with NEMISA ( National Electronic Media of South Africa), SABC Foundation and National Community Radio Forum were main vehicles. 20 Cls Actuals CY Actuals PY Adjusted Annual budget Compensation of Employees Computer Servicing, Internet & Website Courier Services Office Cleaning, Maintenance, Plants & Security Office Consumables Printing & Stationery Professional Services Report writing, Printing & Publishing Telecommunication Expenses Training and Development Travel, Accomodation and Related Expenditure Vehicle expenses, maint, fuel and other Venues, Catering & Event Management Grand Total

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ICT Governance, Strategy and Operations Governance framework developed and institutionalised into the oversight processes. A long term ICT strategy adopted, audit and gap analysis between current and desired state developed culminating in an investment project to refresh the current infrastructure. The cost of the investment was budgeted for R4, 5 million where only R503, 000 for the initial stages of the project. The initial phase/project will be concluded during 3 rd quarter of the new financial year. The continuous improvement elements of the5 year long term strategy earmarked for the outer years are not yet funded. Total operating expenditure recorded for the department/unit was R2, 9 m against a budget of R2,2 m. 22

23 ICT planning and feasibility approach

24 ICT strategy deployment pathway

25 Website traffic during 2014/2015 financial year– external users Extracted from Google analytics

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Accounting Officer – complied with the provisions of PFMA, section 38 – Systems of internal control – Risk management – Sound Financial management and systems to administer/account for REAL ( Revenue, Expenses, Asset and Liabilities) were in place – Section 40 reporting – in-year and annual reporting to promote accountability and transparency Executive Authority – Processes and systems of corporate governance in place and applied through out the reporting period. Audit Committee – Committee terms of reference and functioning during the period complied to PFMA section 38, 76&77 and section 27 of National Treasury Regulations. – Internal audit capacity and competence existed through out the period, the function of which was regularly subject the oversight of the audit committee 27 Corporate governance

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29 Exceptions – disclosures (UIF’s) The accumulated irregular expenditure mainly arose from the 2007/2008 & 2008/2009 period. Awaiting regularisation from National Treasury – applications for such were made. Exceptions for non-compliance were raised regrettably for the current period at R1 m, down from R1,8 m in the previous period. Key transactions related to the Gender Summit which was co-funded by private third parties. Payments of penalties and interest to SARS – on issues dating back to Consequences Management Applications made to regularise past non-complying expenditure All reconciliations, payment and filing of tax returns completed in adherence to the Tax Laws. Systems of regular compliance internally instituted. Training and corrective action taken for and against officials where relevant There were no reported fraud or any misappropriation in these transaction and thus no receivable whatsoever was noted in the financial misconduct.

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31 Unfavourable Favourable 2014/15 Matters of emphasis A restatement of prior period figures (SARS) which the OAG refer users of the AFS to consider 2014/15 Compliance with laws and Regulations issues SCM – needs vast improvements Irregular, fruitless and wasteful expenditure reduced materially in comparison to past periods 2014/15 Matters of emphasis A restatement of prior period figures (SARS) which the OAG refer users of the AFS to consider 2014/15 Compliance with laws and Regulations issues SCM – needs vast improvements Irregular, fruitless and wasteful expenditure reduced materially in comparison to past periods

32 Supply Chain and expenditure management Capabilities – capacity building in terms of improving processes and systems (SoP’s and automation), building competencies through training Behaviour – Consequence management in line with section of the PFMA Oversight and Governance - Regular reporting and tracking of the implementation of audit action plans Governance Governance framework revised, consistent with recommended practice, compliant to the AGSA recommendations Information security – Business Continuity, Passwords protocols and other best practice intervention will be implemented in the new environment Performance Fewer findings noted compared to previous periods Consistency of reporting Reliability and usefulness of information Smartness/definitions & measurability of targets Regularity Audit Outcomes 2014/2015 Unqualified opinion on AFS Weaknesses currently addressed in terms of the Audit action plans developed subsequent to receipt of management letter of the 2014/2015 regularity audit read Apart from summary on the left of slide, detailed action plans have been developed, implemented and tracked by oversight structures/leadership of the CGE on a continuous basis

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