1. As at 31 December 2016/17 FINANCIAL YEAR Date: 24 March 2017
SPORT AND RECREATION PORTFOLIO COMMITTEE PRESENTATION ON FINANCIAL PERFORMANCE
As at 31 December 2016/17 FINANCIAL YEAR
Date: 24 March 2017
Mr. Alec Moemi
Director General
Sport and Recreation South Africa

2. BUDGET AND EXPENDITURE ANALYSIS AS AT 31 December 2016
1. EXECUTIVE SUMMARY
The departmental financial performance as at 31 December 2016 are as follows:
The overall spending is at R856.6 million which represent 83% of the total budget allocation out of a total budget of R1,026 billion. There is a 8% overspending in terms of arithmetic forecast of 75% as its equivalent to nine months.
Spending on Compensation of employees is at 72% totalling R77 million out of a budget of R106.5 million There is a 3% under spending due to vacant posts of e.g. Director: School Sport which the Department has finalised the process of appointment (The Director started on the 1st January 2017). Other vacancies for junior and lower levels posts also contributed to the under spending. The department is in a process of filling all critical posts before the end of the current financial year.
Expenditure on Goods and services is at 90% totalling R151.4 million out of a budget of R167.9 million. There is a 15% overspending due to the fact that all departmental projects were rolled out and most paid during the past quarters (Q2 and Q3).

3. BUDGET EXPENDITURE ANALYSIS AS AT 31 December 2016
Transfer payments’ spending is at 84% totalling R624.9 million out of a budget of R749.8 million, The acceptable arithmetic forecast of 75%. Transfers to provinces were scheduled 15%, 35%, 35%, and 15% per quarter respectively hence the overspending on Transfers. Households (Leave gratuities and Bursaries (Non employees)) payments also contributed to the overspending.
Payment for Capital Assets expenditure is at 65% totalling R1.4 million out of a budget of R2.1 million. The expenditure is expected to increase once the invoices for computers are received and payment effected by SCM

4. 2. OVER ALL DEPARTMENTAL SUMMARY
EXPENDITURE vs BUDGET PER ECONOMIC CLASSIFICATION AS AT 31 December 2016
2. OVER ALL DEPARTMENTAL SUMMARY
Economic Classification
Budget
Expenditure
Available Budget
Exp in %
Current Payments
274,590
228,515
46,075
83%
Compensation of Employees
106,596
77,083
29,513
72%
Goods and Services
167,994
151,432
16,562
90%
Transfers and Subsidies/Provinces
749,843
626,203
123,640
84%
Provinces
555,708
464,611
91,097
Public Entities
33,012
27,523
5,489
Federations
161,123
132,788
28,335
82%
Households -
1,281
(1,281)
Capital Assets
2,167
1,402
765
65%
Payment for financial assets
565
(565)
TOTAL
1,026,600
856,685
169,915
Department have applied to National Treasury to shift funds within Transfers from Federations to cover the overspending on Households (Ministerial Bursary programme). The programme is budgeted for accordingly for the coming MTEF period going forward.

5. EXPENDITURE vs BUDGET PER ECONOMIC CLASSIFICATION AS AT 31 December 2016
3. PROGRAMME 1 - ADMINISTRATION
Economic Classification
Budget
Expenditure
Available Budget
Exp in %
Administration
Current Payments
130,612
92,183
38,429
71%
Compensation of Employees
75,174
56,850
18,324
76%
Goods and Services
55,438
35,333
20,105
64%
Transfers and Subsidies 83
272
(189)
328%
Departmental Agencies and Acc 68 15
82%
Households -
204
(204)
Capital Assets
2,167
1,380
787
Machinery and Equipment
TOTAL
132,862
93,835
39,027
Overspending on household (Leave discounting) will be off set with a virement at year end.

6. EXPENDITURE vs BUDGET PER ECONOMIC CLASSIFICATION AS AT 31 December 2016
4. PROGRAMME 2 – ACTIVE NATION
Economic Classification
Budget
Expenditure
Available Budget
Exp in %
Active Nation
Current Payments
54,519
84,606
(30,087)
155%
Compensation of Employees
11,651
6,106
5,545
52%
Goods and Services
42,868
78,500
(35,632)
183%
Transfers and Subsidies
594,216
503,211
91,005
85%
Provinces and Municipalities
555,708
464,611
91,097
84%
Non-Profit Institutions
38,508 -
100%
Households 92
(92)
TOTAL
648,735
587,817
60,918
91%
The Under spending in compensation is due to vacant post that are currently being filled, e.g. Director: School Sport (Director – started on the 01st of January 2017).
Overspending on household (Leave discounting) will be off set with a virement at year end

7. EXPENDITURE vs BUDGET PER ECONOMIC CLASSIFICATION AS AT 31 December 2016
5. PROGRAMME 3 – WINNING NATION
Economic Classification
Budget
Expenditure
Available Budget
Exp in %
Winning Nation
Current Payments
59,907
21,956
37,951
37%
Compensation of Employees
4,380
2,265
2,115
52%
Goods and Services
55,527
19,691
35,836
36%
Transfers and Subsidies
31,242
26,753
4,489
86%
Departmental Agencies and Acc
21,896
16,422
5,474
75%
Households -
985
(985)
Non-Profit Institutions
9,346
100%
TOTAL
91,149
48,709
42,440
53%
The total spending rate is at 53%, under spending by 22%. Under spending on compensation is mainly due to unfilled vacancies.
Overspending on household (Ministerial Bursary) will be off set with a virement at year end.

8. 6. PROGRAMME 4 – SPORT SUPPORT
EXPENDITURE vs BUDGET PER ECONOMIC CLASSIFICATION AS AT 31 December 2016
6. PROGRAMME 4 – SPORT SUPPORT
Economic Classification
Budget
Expenditure
Available Budget
Exp in %
Sport Support
Current Payments
13,270
23,162
(9,892)
175%
Compensation of Employees
7,543
10,298
(2,755)
137%
Goods and Services
5,727
12,864
(7,137)
225%
Transfers and Subsidies
124,302
95,967
28,335
77%
Departmental Agencies and Acc
11,033 -
100%
Non-Profit Institutions
113,269
84,934
75%
Payments for Capital Assets 22
(22)
TOTAL
137,572
119,151
18,421
87%
The spending rate on Transfers and Subsidies is at R 95.9 million which represent 77% of the budget. Transfers to provinces were scheduled 15%, 35%, 35%, and 15% per quarter respectively hence the overspending on Transfers.

9. EXPENDITURE vs BUDGET PER ECONOMIC CLASSIFICATION AS AT 31 December 2016
7. PROGRAMME 5 – INFRASTRUCTURE SUPPORT
Economic Classification
Budget
Expenditure
Available Budget
Exp in %
Infrastructure Support
Current Payments
16,282
6,608
9,974
41%
Compensation of Employees
7,848
1,564
6,284
20%
Goods and Services
8,434
5,044
3,390
60%
Payments for Financial Assets
565
(565)
TOTAL
7,173
9,109
44%
The Programme spent R7 million out of budget of R16.2 million which represent a rate of 44% for the period of nine months which is less than the nominal rate of 75% by 31%, the expenditure is expected to increase once invoices for out door gyms are received and processed.
The Under spending in compensation is due to vacant post that are still to be filled e.g. Chief director and Director infrastructure.

10. THANK YOU