1. Annual Budget for 2017/2018 Financial Year
A presentation to the Portfolio Committee for Women in the Presidency The Parliament of the Republic of South Africa
Annual Budget for 2017/2018 Financial Year
The presentation provides summaries of financial management matters and results that were subjected to oversight by the Finance Committee and Audit Committee.

2. Table of Contents Introduction and Purpose of the presentation
The Legislative framework
The fiscal environment, principles and planning assumptions
The 2017/18 proposed budget
Risk Management & related matters

3. Introduction This presentation seeks to outline;
the CGE budget for the ensuing financial year (2017/2018);
Draw a link to the APP and other operating activities planned for the same period;
Highlight challenges, threats and opportunities and
Make recommendations for the appropriation for the Annual Plans activities and other matters related to the execution of the plan.

4. Legislative Framework
Chapter 13 of the Constitution of South Africa, Act 108 of 1996 and the Public Finance Management Act of 1999 (as amended) advances for values which espouses openness and accountability in the allocation and use of state resources.
Under Chapter 1 of the PFMA (The Act) the values are bolstered further by provisions stating that the object of the Act is to secure transparency, accountability and sound management of the resources
The Framework for strategic planning and Annual Performance plans of propagates that operational budgets must be linked to the institutions strategic objectives and their respective legislated mandates
Section 38 of the PFMA and related Treasury regulations promotes the integration of Risk Management practices into strategic planning and financial controls

5. The Fiscal environment - MTEF
Over the medium term, during the previous two(2) financial years; over R8 million reduction was effected against the CGE baseline.
For the year under planning (2017/2018), an increase in allocation for R8,2 million was made from a baseline of R69,9 million in 2016/2017 to R78, 3 million for 2the new period.
The budget and Annual Plan were as a result prioritised to ensure that service delivery occurs effectively whilst a sound financial position and performance is retained/sustained by the organisation.

6. NT - Framework for strategic planning

7. Planning principles and assumptions
General price changes at an annualised rate of 5%
Cost of living adjustment for remuneration at 6% p.a. – This will inevitably absorb the additional allocation ( 6% of current COE baseline of R47m)
Previous moratorium retained/upheld, noting that unchanging operating and funding circumstances
To an extent possible, “zero basis” budgeting was followed, consultative approach taken where appropriate albeit with limit
Rigidities present given the nature and structure of the CGE funding model v operating model – Most of cost components are structurally fixed ( Office overheads and establishment constituting over 80% of the annual budget). This leaves little space for planning of direct APP activities

8. Total allocation granted by NT for the year under plan is R78, 3 million from a baseline of R69,9 million in the previous FY.
The budget is a product of prioritisations against a constrained funding position.
The increase of allocation by R8, 2 million is against a depressed baseline previously subjected to budgetary cuts. The increase/injection will therefore be absorbed by price inflation on G&S expenditure and anticipated cost of living adjustment for COE.
Efficiency gains and cost savings are factored into the budget to ensure effective realisation of service delivery.

9. Funding constraints remains – refer to CAPEX requirements

11. R58, 7 million (or 75% )of the allocation is planned for the Commissioners’ and main service delivery programmes
Administration (Corporate services) accounts for (25% or R18,1 m) of the annual budget.
R78, 3 million allocation of which;

15. Risk Management
Section 38 of the PFMA further enlist Risk Management as an essential responsibility of the Accounting Officer
The only alternative to risk management is crisis management --- and crisis management is much more expensive, time consuming and embarrassing.
JAMES LAM, Enterprise Risk Management, Wiley Finance © 2003
Without good risk management practices, government cannot manage its resources effectively. Risk management means more than preparing for the worst; it also means taking advantage of opportunities to improve services or lower costs.
Sheila Fraser, Auditor General of Canada

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21. ANNEXURES

22. Capital expenditure needs – 2017/2018 period
R3 million of CAPITAL EXPENDITURE requirements not fully funded from the baseline allocation
The items are critical for maintenance and continuous improvement goals aspired for in the medium term plans

23. This is the structure designed to support the existing/approved 5-year strategic plan. But remain unfunded since inception of the plan…..due to budgetary cuts and the level of the baseline

24. Against a funded establishment at a total annual cost of R 58 million, R4 million saving was planned as follows:
Moratorium on the filling of positions retained: COO, HR director, Legal research, Manager in Office of Chair in the main.
Timing for the filling of existing positions – benefit factored into this plan.
Overall saving amounts to R4 million ( Short term)

25. CGE budget 2017/2018
Office Overheads
Administrative expenses