1. QUARTER 3 OF THE 2015/16 FINANCIAL YEAR Date: 25 February 2016
PRESENTATION TO THE PORTFOLIO COMMITTEE ON SPORT AND RECREATION ON FINANCIAL PERFORMANCE
QUARTER 3 OF THE 2015/16 FINANCIAL YEAR
Date: 25 February 2016
Mr. Alec Moemi - Director General
Sport and Recreation South Africa

2. BUDGET AND EXPENDITURE ANALYSIS AS AT 31 DECEMBER 2015
EXECUTIVE SUMMARY
The departmental financial performance at the end of the third quarter of 2015/2016 financial year are as follows:
The overall spending is at R720.1 million which represent 73% of the total budget allocation. This is within the norm in terms of arithmetic forecast (75%) as its equivalent to nine months.
Spending on Compensation of employees is at 69% totalling R69.7 million. There is 6% under spending due to vacant posts of e.g. Director: IT and School Sport. Other vacancies for junior and middle management positions as well as lower levels posts also contributed to the under spending. During the 2015/16 financial year management has approved advertising of all prioritised vacant posts.
The filling of vacancies is underway as compared to last financial year this time we had a 9% under spending. This was to allow the organizational review process to be completed before posts are filled on the revised establishment.

3. BUDGET EXPENDITURE ANALYSIS AS AT 31 DECEMBER 2015
Expenditure on goods and services is at 86% totalling R142.5 million. The acceptable arithmetic forecast of 75%. It must be noted that most of the departmental projects were rolled out in the second and third quarter of the year.
Transfer payments’ spending is 70% totalling R506.5 million, which is 5% less than the arithmetic forecast of 75%. It must however be noted that the second and the third quarter transfers are processed as per the approved cash flow except for the three provinces, namely; Limpopo, Western Cape & KZN were withheld due to non-compliance.
Payment for capital assets expenditure is at 67% the expenditure is expected to increase once the procurement of IT equipment and software are processed

4. GRAPHICAL VIEW OF THE BUDGET PER ECONOMIC CLASSIFICATION FOR 2015/16 FINANCIAL YEAR

5. BUDGET PER PROGRAMME FOR 2015/16 FINANCIAL YEAR

6. ECONOMIC CLASSIFICATION: COMPENSATION OF EMPLOYEES
EXPENDITURE ON COMPENSATION OF EMPLOYEES AS AT 31 DECEMBER 2015
ECONOMIC CLASSIFICATION: COMPENSATION OF EMPLOYEES
PROGRAMME
BUDGET
APR
MAY
JUN
JUL
AUG
SEP
OCT
NOV
DEC
TOTAL EXP
TOTAL AVAILABLE
% SPENT
ADMINISTRATION
66,005
5,312
5,126
5,566
5,498
6,637
6,026
5,597
5,787
6,120
51,669
14,336
78%
ACTIVE NATION
16,424
503
520
596
599
756
638
721
511
808
5,652
10,772
34%
WINNING NATION
7,306
137
113
190
167
189
262
195
213
310
1,776
5,530
24%
SPORT SUPPORT
8,081
951
984
1,197
1,023
1,179
953
884
1,186
753
9,110
-1,029
113%
INFRASTRUCTURE
2,889
207
188
182
145
135
158
1,532
1,357
53%
TOTAL
100,705
7,110
6,931
7,731
7,432
8,898
8,014
7,564
7,855
8,204
69,739
30,966
69%

7. EXPENDITURE ON COMPENSATION OF EMPLOYEES AS AT 31 DECEMBER 2015
For the period of nine months the ideal percentage spent should be 75%, however the overall expenditure for compensation of employees is at 69% which is 6% below the ideal percentage.
This is mainly due to vacant posts especially those of senior managers, e.g. Director School Sport and Director IT

8. ECONOMIC CLASSIFICATION: GOODS AND SERVICES
EXPENDITURE ON GOODS AND SERVICES AS AT 31 DECEMBER 2015
ECONOMIC CLASSIFICATION: GOODS AND SERVICES
PROGRAMME
BUDGET
APR
MAY
JUN
JUL
AUG
SEP
OCT
NOV
DEC
TOTAL EXP
% SPENT
ADMINISTRATION
56,577
1,587
3,995
3,483
4,217
4,893
2,843
4,206
5,551
2,593
33,368
59%
ACTIVE NATION
38,316
3,671
439
1,309
2,797
7,036
6,809
7,101
27,128
10,737
67,027
175%
WINNING NATION
56,215
174
339
685
410
1,384
296
1,556
7,747
8,587
21,178
38%
SPORT SUPPORT
7,109
289
1,518
2,038
3,237
4,402
1,851
2,717
1,615
2,490
20,157
284%
INFRASTRUCTURE
6,789 22
264 36
277 66 19 65 47 3
799
12%
TOTAL
165,006
5,743
6,555
7,551
10,938
17,781
11,818
15,645
42,088
24,410
142,529
86%

9. EXPENDITURE ON GOODS AND SERVICES AS AT 31 DECEMBER 2015
Total expenditure for goods and services is currently at R142.5 million which represents 86% of the total budget and this does not take into account the known commitments of R3.6 million. The commitments mainly resulted from insufficient supporting documentations which then prevents processing and final authorisation of payments.
Programme 1
Expenditure is at 59% for the period of nine months which is less than nominal rate of 75 % by 16%.
Programme 2
 The total spending rate is 175%, overspending by 100%, with School Sport at 24%, Community Sport at 462%.
Programme manager is at 321%. Transfers to the provinces are at 65%.
The spending in school sport will increase once the Ministerial Sports Bursary claims are paid, and School Sport Championship claims and invoices are paid. The overspending in Community Sport is due to payments for the Indigenous Games project and Sport equipment and apparel.

10. EXPENDITURE ON GOODS AND SERVICES AS AT 31 DECEMBER 2015
Programme 3
The total spending rate is 38%, under spending by 37%, with Scientific Support at 6.3%. Major Events is at 99%.
Programme manager there is no spending because at the moment there is no Programme manager.
Recognition System is at 58%, the spending will increased after the Sports Awards payments.
Programme 4
The spending rate is at a 284% overspending by 209% with programme manager spending at 18%. Expenditure for International Liaison is at 238% with a 163% (overspending).
The Sport Service Providers is at 350% which is 275% more than nominal rate.
This substantial increase is due to payments for Basketball National League, implementation of the Brutal Fruit Netball Premier League and also due to support provided to the Eminent Person Group (EPG) on Transformation in Sport.

11. EXPENDITURE ON GOODS AND SERVICES AS AT 31 DECEMBER 2015
Programme 5
The spending rate is at 12% for the period of nine months which is less than nominal rate of 75%
It is projected that the expenditure will increase once the unit commence with the monitoring of development of sport facilities in various provinces.

12. ECONOMIC CLASSIFICATION: TRANSFERS AND SUBSIDIES
EXPENDITURE ON TRANSFER PAYMENTS AS AT 31 DECEMBER 2015
ECONOMIC CLASSIFICATION: TRANSFERS AND SUBSIDIES
ITEMS
BUDGET
APR
MAY
JUN
JUL
AUG
SEP
OCT
NOV
DEC
TOTAL EXP
% SPENT
PROVINCIES
537,294 -
179,078
85,173
87,087
351,338
65%
DEPARTMENTAL AGENCIES & ACCOUNTS
30,363
19,816
5,235
25,051
83%
NON-PROFIT INSTITUTIONS
153,013
18,306
4,000
47,308
33,631
22,683
129,928
85%
HOUSEHOLD 50 25 60
135
TOTAL
720,670
179,128
23,816
94,408
33,691
109,770
506,452
70%
Transfer Payments
The under spending in Transfers and Subsidies is due to withholding of funds to the three provinces namely Limpopo, KZN and Western Cape due to non-compliance.
The expenditure on Non-Profit Institutions will increase in the fourth quarter following approval of payments.

13. ECONOMIC CLASSIFICATION: CAPITAL ASSETS
PAYMENTS FOR CAPITAL ASSETS AS AT 31 DECEMBER 2015
ECONOMIC CLASSIFICATION: CAPITAL ASSETS
ITEMS
BUDGET
APR
MAY
JUN
JUL
AUG
SEP
OCT
NOV
DEC
TOTAL EXP
% SPENT
MACHINERY AND EQUIPMENT
2,167 69 42 45
1,009
135 -
448
-304 1
1,445
67%
TOTAL
Payments for Capital Assets
Expenditure for capital assets has drastically improved from the first quarter due to the procurement of some computer equipment and fixing of the departmental excess doors not yet being approved.