Annual Financial Statements Briefing to Portfolio Committee Parliament of the Republic of SA 11 October 2011

Outline Statement of Financial Performance Statement of Financial Position Statement of Cash flow Financial management –Outcomes from the AGSA Report –Successes & Challenges

Statement of Financial Performance – Revenue ……………1 Transfers from National increased by 6% from R49, 112,000 in 2009/10 Financial year to R51,949,000 in 2010/11 This increase represents Only an adjustment for inflation on the baseline of the previous years i.e. The increase does not include additional funding for any change project R206, 972 was also received from other revenue sources, mainly donor funding from Unifem realized at R127, 805 made to finance the Mock Trial Session that was held in support to the department in processes leading to CEDAW session in Geneva held in January 2011 Total Revenue recorded therefore stood at R52,155, 972

Statement of Financial Performance – Revenue ……………2

Statement of Financial Performance – Baseline budget figures COMMISSIONERS: GOVERNANCE & SUPPORT CORPORATE SUPPORT PROGRAMMES CAPITAL EXPNDITURE Grand Total % spread by economic classification Compensation of Employees 8,219,867 6,654,791 20,302,015 35,176,673 68% Goods & Services 1,234,800 6,828,900 7,143,300 15,207,000 29% Capital expnditure 1,565,327 3% Grand Total 9,454,667 13,483,691 27,445,315 1,565,327 51,949, % % spread by program18%26%53%3% 100% These programes were funded from the transfers made by Treasury during the year under review

Statement of Financial Performance – Expenses ……………1 Total spending realized for the year was R49. 8 million of which: –R16, 96 m was on Goods and Services, where the main expenditure Drivers were: Travel and accommodation : R5,5 million Professional Services : R4 million and includes expenses such as Audit fees, legal costs, etc Printing & stationery : R1, 6 million Telecommunications : R2, 4 million Computer expenses (R833, 276), Office maintenance etc (R930, 412) –R29, 9 m on Compensation of Employees, split per program as follows: Main Core program : R 18 m Corporate Support: R6, 4 m Commissioners: R5, 6 m –R180, 891 on Capital Expenditure, for purchase of assets as follows: Office Equipment : R112, 753 Office Furniture and Computer Equipment respectively for R39, 389 and R28, 749

Statement of Financial Performance – Expenses ……………2 Actual expenditure for the 12 months period ending 31 March 2011 COMMISSIONERS: GOVERNANCE & SUPPORT CORPORATE SUPPORT PROGRAMMESCAPITAL EXPNDITURE Grand Total % spread by economic classification Compensation of Employees 5,566,679 6,399,695 17,971,185 29,937,560 60% Goods & Services 1,509,171 8,938,997 6,513,985 16,962,15334% Capital expnditure 180,891 0% Depreciation and amortisation 2,681,411 5% Grand Total 7,075,850 18,020,104 24,485, ,891 49,762,015 % spread by program 14%36%49%0.4%100% This spending compares favourable against the budget figures of R51, 9 million shown above

Statement of Financial Performance – summary A surplus of R2, 574, 849 was recorded for the year under review, compared to a deficit of R2, 329, 703 in the preceding period Savings from Salaries ( of R5, 2 m) due to vacancies a the major contributor to the reported surplus Offset partly by the depreciation expense of R2, 7 million Capital expenditure budget was also under spent by R1,56 million mainly for the procurement for the IT infrastructure

Statement of Financial Position……1 Current assets levels increased year on year from R1, 6 m to R9 m mainly being constituted of Cash & cash equivalents Non-Current assets carrying amounts are diminishing due to age and were R2,2 million in 2010/11 compared to R4, 88 m as at end of 2009/10. The movement was mainly due to depreciation Current liabilities have increased compared to prior year, from R7,4 m to R9, 6 m in the current year mainly as a result of the rise in provisions for DPW The Net Asset situation shows a final improvement at R1, 6 million as compared to a negative amount of R969, 627 as at 31 March 2010

Statement of Financial Position……2 Contingencies disclosed in the AFS a made out of liabilities mainly from the following claims: –Department of Public Works R5, 2 million : Still being followed through with the department with support from National Treasury and DoJ –Axolute R814, 192 – the matter having been withdrawn by the plaintiff and the contingency falls away post balance sheet date –CSAP – The possible liability emanates from the part ( R2, 8 m ) that other parties to the MoU viz. HRCSA & OPP owe to the Service Provider and given the firm commitment by these parties, the probability of the liability taking effect is minimal or completely diminished

Statement of Cash flow Cash generated is mainly accounted for by injections from National Treasury: R52 m compared to R49m in the past period The cash was utilized for purposes of operations: Personnel costs as well as Goods & Services at R44, 7 million whilst 47, 5 million was utilized in the previous financial year, comparatively Minimal amount of cash (at R180, 891) was utilized for the acquisition of fixed assets, similarly so in the previous year This culminated in excess cash at hand of R8, 87 million at end of 2010/11compared to R1, 6 million as at 31 March 2010 of R969, 627 as at 31 March 2010

Financial Management & Audit Outcomes……..1 An improvement in the financial Management environment resulting in an Unqualified Report by AGSA Matters emphasized which are been dealt with by management are: –Irregular, Fruitless & wasteful expenditure: Regularization process under process with National Treasury. The corrective action needed does not require recovery as there has not materially been any embezzlements, whatsoever but includes interventions to ensure that officials responsible stems recurrence –Compliance in terms of reporting: PFMA, GRAP & other standards, the situation is materially improving because of appropriate staffing choices as well as development –Procurement : the Commission has created the SCM unit since January 2011 and already the intervention is yielding results that includes procedures to avoid irregular spending –

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