1. Vote 8 A presentation to the Portfolio Committee of Parliament of SA Budget linked to the Annual Performance Plan for the financial period : 1 April 2013 to 31 March 2014 1

2. Vote 8 Vote 8 Outline 1.Background legislative framework 2.Purpose of presentation 3.The CGE Budget in Brief 4.The budget over the MTEF period – An overview 5.2013/14 allocations–APP costing, Analysis, comparatives & trends 6.Financial management and the PFMA 2

3. Legislative Framework Chapter 13 of the Constitution of South Africa provides that ” money may be withdrawn from the National revenue Fund only in terms of an appropriation by an Act of Parliament, or as a direct charge……..” The Framework for strategic plan and Annual Performance plans of 2010 propagates that operational budgets be linked to the institutions strategic objectives The object of the PFMA is to secure transparency, accountability and sound management of the resources…..Chapter 1 of the Act These are citations from the governing authorities/mandate/prescripts 4 Vote 8 3

4. Introduction The purpose of this presentation is therefore to provide an outline to the Committee on : A funding background & detailed spending plans set to advance the Commission’s Legislative mandate for the 2013/2014 period Highlight spending patterns and trends over the medium term and indicate linkages to strategic plans and APP Related financial management issues 4 Vote 8 Vote 8

5. A brief analysis of the CGE budget 5

6. The nature and structure of the CGE budget 6 Operations are run primarily through 3 main programmes : Governance, Corporate Support and Main Service?/Core program The top three spending drivers are: ▫Compensation of Employees 71% ( We are a service driven & human intensive) ▫Professional Services 5% ( Litigations, audit fees, etc) ▫Travel& Accommodation, event management & media – 11% (outreach & visibility are at the core our strategy) ▫Reports production and printing – 3% ( All work published after each research study/investigation ▫ Telecommunications, Courier Services – 4% (Offices country-wide) These make up 94% of the total spending thus only 6% (+/- R4.3 m) is relatively variable. This is strictly prioritized to cover All office overheads – Less flexibility This is a historical as well as projected pattern of spending even in the outer years of the medium term plan Vote 8 Vote 8

7. Medium term Allocation per program 7 Vote 8 Vote 8 51% is spent on core program Programme 2013/14 2014/15 2015/16 2016/17 2017/18 %/prgm COMMISSIONERS: GOVERNANCE & SUPPORT 10 749 984 11 318 749 11 523 228 12 113 513 12 723 68017% CORPORATE SUPPORT SERVICES 20 161 681 21 504 114 22 786 185 24 028 612 25 254 47532% SERVICE DELIVERY PROGRAM 32 168 335 34 412 138 36 477 587 38 386 275 40 317 81751% Grand Total 63 080 000 67 235 000 70 787 000 74 528 400 78 295 972 Rate of growth per annum6.8%6.6%5.3% 5.1% Growth mainly due to cost of living adjustments realising higher than inflation – 6.6 % for 2013- 2014

8. Programme expenditure per economic classification 8 Vote 8 Vote 8 Programme 2013/14 2014/15 2015/16 2016/17 2017/18 COMMISSIONERS: GOVERNANCE & SUPPORT 1 858 800 1 780 459 1 412 380 1 497 123 1 576 470 CORPORATE SUPPORT SERVICES 9 192 421 9 736 505 10 312 198 10 930 926 11 501 904 SERVICE DELIVERY PROGRAM 7 548 800 8 000 779 8 480 825 8 989 675 9 451 387 Total on goods & services 18 600 021 19 517 743 20 205 403 21 417 723 22 529 761 Programme 2013/14 2014/15 2015/16 2016/17 2017/18 COMMISSIONERS: GOVERNANCE & SUPPORT 8 891 184 9 538 290 10 110 848 10 616 390 11 147 210 CORPORATE SUPPORT SERVICES 10 969 260 11 767 609 12 473 987 13 097 686 13 752 571 SERVICE DELIVERY PROGRAM 24 619 535 26 411 359 27 996 762 29 396 600 30 866 430 Total on Cost of Employees 44 479 979 47 717 258 50 581 597 53 110 677 55 766 211 Grand total of allocated funds 63 080 000 67 235 000 70 787 000 74 528 400 78 295 972

9. Detailed expenditure over the medium term 9 Cls 2013/14 2014/15 2015/16 2016/17 2017/18 Bank Charges 51 600 54 690 57 971 61 449 64 706 CAPEX - - - - Compensation of Employees 44 479 979 47 717 258 50 581 597 53 110 677 55 766 211 Computer Servicing, Internet & Website 639 900 671 908 703 726 745 945 785 448 Courier Services 127 800 135 452 143 579 152 194 160 258 Employee Assistance Program 300 000 317 962 337 040 357 262 376 197 Media Outreach 888 000 941 168 997 638 1 057 497 1 110 372 Office Cleaning, Maintenance, Plants & Security 1 615 821 1 712 567 1 815 321 1 924 240 2 024 510 Office Consumables 35 700 37 838 40 108 42 514 44 767 Printing & Stationery 904 800 958 974 1 016 513 1 077 503 1 134 604 Professional Services 3 144 200 3 332 457 3 532 404 3 744 348 3 940 294 Report writing & Printing Materials 1 310 000 1 388 435 1 471 741 1 560 046 1 638 060 Telecommunication Expenses 2 142 000 2 270 251 2 406 466 2 550 854 2 683 427 Travel, Accomodation and Related Expenditure 4 796 000 4 893 522 4 712 226 4 994 960 5 258 693 Venues, Catering & Event Management 1 994 200 2 113 601 2 240 417 2 374 842 2 495 653 Training and development 650 000 688 918 730 253 774 069 812 772 Grand Total 63 080 000 67 235 000 70 787 000 74 528 400 78 295 972 Vote 8 Vote 8

10. Comparatives; Past, present and projected spending 10

11. Spending over the MTEF period...1 11 Vote 8 Vote 8 Objectives/Program : in thousand of Rands Past outcomesEstimatedMedium-term estimate Projections Outcome 2009/10 2010/11 2011/122012/132013/142014/152015/162016/172017/18 CORE Service Delivery 19 818 20 985 27 397 26 460 32 169 34 283 36 094 38 002 40 029 Strategic Objective 1 Creation of enabling gender equality legislation 12 852 7 060 8 603 9 171 9 655 10 166 10 708 Strategic Objective 2 Protection and Promotion of gender rights 8 450 17 000 20 709 22 067 23 233 24 461 25 765 Strategic Objective 3 Monitoring compliance to treaties 6 095 2 400 2 857 3 045 3 206 3 376 3 556 Strategic Objective 4 Commissioners and Corporate Support 37 164 30 651 23 423 31 047 30 912 32 952 34 693 36 527 38 475 Commissioners office 19 066 10 340 6 125 8 942 10 750 11 459 12 065 12 703 13 380 Chief executive Officers office 2 016 4 774 3 732 4 389 6 663 7 102 7 478 7 873 8 293 Finance and administration 7 784 11 100 7 164 7 735 6 717 7 161 7 539 7 937 8 361 Human Resources Department 1 498 1 610 2 589 2 841 3 567 3 802 4 003 4 214 4 439 InformationTechnology 1 503 1 985 2 251 2 682 2 375 2 532 2 665 2 806 2 956 Communication Department 3 231 751 1 451 4 140 840 896 943 993 1 046 Capital Expenditure 2 066 91 111 318 - - - - Total 56 982 51 636 50 820 57 507 63 080 67 235 70 787 74 528 78 504

12. Spending over the MTEF period...2 Since 2011/2012, spending has shifted from administration to core program – budgeted for over 50% of the allocation Current year (2012/2013) results, reflects an under- spending of R2m (or 4% of the original allocation) The outer MTEF projections are incrementally determined, on the basis of inflation parameters from National Treasury 12 Vote 8 Vote 8

13. 2013-2014 – Operational Budget 13

14. Consolidated operational budget – 2013-2014 14  Core program: from the salaries bill of R45 m, 55% is earmarked for main program (R25m)  Overall COE  (71% of total budget), of which 39 % is spent on main program  G&S  (29% ) where main program constitutes 41%  Main program makes up 51% of total budget Vote 8 Goods & Services Compensation of employees Grand totals CEO 3 152 500 3 510 200 6 662 700 HR 1 659 000 1 907 500 3 566 500 Finance 2 769 700 3 947 500 6 717 200 Communications 840 200 IT 1 411 200 963 800 2 375 000 Corporate Servies 8 992 400 11 169 200 20 161 600 Commissioners 1 858 800 8 891 200 10 750 000 Total non-core program 10 851 200 20 060 400 30 911 600 Core programme 7 548 800 24 619 600 32 168 400 Required funding 18 400 000 44 680 000 63 080 000 Available funding 18 600 000 44 480 000 63 080 000

15. 2013/14 Programme budget  R63, 1 million The Core service deliver sub-programme – 51% (R32 million) of the total budget (R63, 1 million) Commissioners programme -17% (R10, 7 million) Corporate Services – 32% (R20 million) Capital expenditure – No resources available (0%) 15 Quarterly reporting

16. Funding situation The allocation has only been earmarked for operational activities in terms of the APP Some strategic options in the APP could not be funded from the available allocation Very critical Capital Expenditure requirements remain unfunded; estimated at R8.7 m ▫IT infrastructure is obsolete and old (Requires R6m) ▫Vehicle fleet has aged – (R2.2 m required) ▫Office furniture & equipment – (R500k) 16 Vote 8 Vote 8

17. 2013-2014 – Budget per strategic objctive 17

18. Strategic objective 1 Data Sub-Strategies Goods& Services - Core program Compensation of Employees Goods & Services - Administrative overheads Grand totals 1. To monitor and evaluate the policies and practices of the public and private sector institutions and provide reports to Parliament 1 280 800 1 763 042 121 236 3 165 078 2. To initiate and/or review legislation that impact on gender equality 105 000 1 049 430 72 165 1 226 594 3. To conduct periodic performance assessments of Government departments, political parties, state institutions, CSOs, and any private sector organisations, on the implementation of legislation and policies that impact on gender equality 169 000 1 574 144 108 247 1 851 391 4. To evaluate the functioning of the national justice facilities for gender discrimination - - - - 5. To convene policy dialogues with identified policy makers on findings and recommendations contained in CGE reports 318 500 1 909 962 131 339 2 359 801 Grand Total 1 873 300 6 296 578 432 987 8 602 865 18 Vote 8 Vote 8

19. This SO deals with the creation of an enabling legislative framework The SO consumes 14% of the total budget, driven by travel and accommodation, printing of reports in addition to the allocated overheads Employee Cost accounts for 25% of COE for main program or R6m 19 SO 1 – Key drivers of spending Vote 8 Vote 8

20. Strategic objective 2 20 Sub-Strategies Goods& Services - Core program Compensation of Employees Goods & Services - Administrative overheads Grand totals 1. To investigate complaints of gender rights violations and identify appropriate redress per Sect. 11(1)(e)of the CGE Act 63 500 283 346 19 484 366 330 3. To develop and implement coordinated programme to promote gender equality 1 183 000 4 932 319 339 173 6 454 493 4. To initiate interventions for sustainable development and promotion of gender equality in cultural and religious organisations 368 000 629 658 43 299 1 040 957 5.To collaborate with organs of state, civil society and other institutions to develop, protect, promote and attain gender equality 1 519 000 10 599 239 728 862 12 847 101 Grand Total 3 133 500 16 444 563 1 130 818 20 708 881 Vote 8 Vote 8

21. SO 2 – Key drivers of spending The SO focuses on the protection and promotion of gender rights. Therefore Education and awareness activities are planned Travel, Accommodation, venues and related R3m) will be used to carry-out targets in the APP COE for officers across line functions will account for about 65% of cost in the main program 21 Vote 8 Vote 8

22. Strategic objective 3 Sub-Strategies Goods& Services - Core program Compensation of Employees Goods & Services - Administrative overheads Grand totals 1. To conduct periodic reviews of state compliance with obligations under the conventions, covenants and charters and to report an a regular basis to Parliament 110 000 1 679 087 115 463 1 904 551 2. To engage national, regional and international bodies on state compliance with conventions, covenants and charters acceded to or ratified and to make recommendations for improvements 55 000 839 544 57 732 952 275 Grand Total 165 000 2 518 631 173 195 2 856 826 22 Vote 8 Vote 8

23. SO 3 – Key drivers of spending This SO is set to monitor the state compliance to international instruments, in which multi-disciplinary teams are used to research, monitor and develop reports for Parliament and multi-lateral institutions The expenditure of R2.8 m constitutes 9% of the budget for the main program. This is largely made out of by salaries (personnel time) 23 Vote 8 Vote 8

24. Strategic objective 4 Sub-Strategies Goods& Services - Core program Compensation of Employees Goods & Services - Administrative overheads Grand totals 1. To establish and maintain a well-defined Commissioners oversight governance structure for execution of the mandate delegated to the Chief Executive Officer, with clear roles, and responsibilities - 9 620 931 1 858 800 11 479 731 2. To develop a financial management strategy that promotes effective, efficient and economic utilisation of resources as well as accountability - 5 557 151 4 316 117 9 873 268 3. To improve, align and maintain innovative ICT infrastructure & systems that support the CGE organisational objectives - 1 356 762 2 167 813 3 524 575 4. To develop a comprehensive HR Strategy that creates an enabling environment for employee wellbeing, talent attraction, development & retention - 2 685 384 2 548 470 5 233 854 5. To develop a long term funding model for the CGE that includes funding from the donor agencies - - - - 6. To implement the communications strategy 800 000 - - Grand Total 800 000 19 220 229 10 891 200 30 911 429 24 Vote 8 Vote 8

25. SO 3 – Key drivers of spending The Governance, administration and management is anchored on this SO: Commissioners, CEO and Support functions carry out activities to ensure accountability, efficiencies, effectiveness of operations R31m or 49% is earmarked for spending under this SO ▫Salaries –R19 m ▫G&S – R12 m 25 Vote 8 Vote 8

26. Financial Performance – 1 April’12 to 31 Dec 2012 26

27. Other Financial Management Matters Risk Management – risk assessments were made for each strategic objectives Risk treatment plans – develop to ensure that targets are met, efficiently, economically and effectively APP implementation plans have been developed to ensure effective control Cashflow management in place for continuous availability of the planned resources Additional funding: Retention of surplus, Fund raising options are in the APP and other plans 27 Vote 8 Vote 8

28. end ▫ Thank you 28