1. PC Sport and Recreation 12 May 2015
Consideration of Budget Vote 40: Sport and Recreation
PC Sport and Recreation
12 May 2015

2. Presentation Outline
Introduction
Overview of the annual performance plan
Strategic priorities and measurable objectives of the department of sport and recreation
Key projects
Budget analysis per programme
Entities budget analysis
Committee’s observations
Recommendations

3. introduction
In January, Cabinet Lekgotla discusses the government priorities for the next financial year.
In February, the President presents the State of the Nation Address (SONA) and the Minister of Finance introduces the National Budget.
In his budget speech, the Minister of Finance tables in Parliament the ENE chapters, Appropriation Bill and The Division of Revenue Bill.
Between March and July, Parliament passes the Division of Revenue Bill and Appropriation Bill which includes considering each departmental vote. These confirm the allocation of funds to each vote.
In September to November, the National Assembly considers Annual Reports and submits BRRR reports, adopts the fiscal framework and passes money bills.
The MTBPS sets out the budget policy framework proposals for the outer three year years (MTEF)
BRRR – provides an assessment of the Department’s service delivery performance given available resources, must provide an assessment on the effectiveness and efficiency of the Department’s use and forward allocation of available resources and may include recommendations on the forward use of resources.

4. introduction 2015-16 Annual Performance Plan
NDP
Medium Term Strategic Framework
Departmental Strategic Plan
Annual Performance Plan

5. SRSA Overview of 2015-16 APP 2013/14 SRSA received a clean audit
New MTSF
3rd year Implementation of NSRP
Budgetary constraint of full implementation of NSRP
R3.1 billion Medium term budget
SRSA has an allocation of R988.4m
Active Nation programme, 64% of departmental budget

6. Boxing SA Overview of 2015-16 APP
Experienced challenges to achieve its objectives in
Marred by suspension of the CEO
CFO suspended
New board in place since May 2014
Inability to generate revenue
Challenge with licensees
Broadcasting rights
Departmental intervention
Boxing SA structure
Boxing SA has a budget of R10.4m

7. SAIDS Started implementing the new WADA code
Overview of APP
SAIDS
Started implementing the new WADA code
Requires infrastructure to fully implement the code
Requires a review of the organisational structure
SAIDS has a budget of R30m

8. STRATEGIC PRIORITIES AND MEASURABLE OBJECTIVES
Two targets set
The numbers in APP and Strat Plan not corresponding
Active Nation the major driver of the outcome, 64%of budget
A detailed plan with all programmes in the technical document
Strategic Goal 1: Citizens’ access to sport and recreation activities

9. STRATEGIC PRIORITIES AND MEASURABLE OBJECTIVES
EPG established to monitor federations based on transformation scorecard
2 Indicators of success
R106.7 m budget allocated for Sport Support Service programme, to fund federations.
Strategic priority 2: Sport and recreation sector adequately transformed

10. STRATEGIC PRIORITIES AND MEASURABLE OBJECTIVES
International success can be measured through the improvement in world rankings and achievement of medals in international competitions
Baseline through previous participation
Strategic priority 3: Athletes achieve international success

11. STRATEGIC PRIORITIES AND MEASURABLE OBJECTIVES
R5.1 m allocated for provision of multipurpose facilities
Sport Trust an implementing partner, was allocated R65m in financial year
Sport council budget increase to 4% of provincial allocations
20% for Club Development in the provincial allocations
3.5% of provincial grants for establishment of provincial academies
2 provinces completed facility count last year
Strategic Goal 4: Enabling mechanisms to support the delivery of sport and recreation

12. STRATEGIC PRIORITIES AND MEASURABLE OBJECTIVES
Adherence to the established systems of governance and accountability
Sport for Social Change programme
Development of monitoring and evaluation tools is necessary
Country reports to UN and other global organisations
Strategic Goal 5: Sport and Recreation used as a strategic tool to support government and global priorities

13. STRATEGIC PRIORITIES AND MEASURABLE OBJECTIVES
Clean audit commendable
R124m allocated for administration
Needs to fill vacant posts
Align the strategic plan with APP
Strategic Goal 6: Efficient and effective organisation

14. School Sport Programme South African Schools National Championships
KEY PROJECTS
School Sport Programme
South African Schools National Championships
National Indigenous Games
Youth Camps U/20
UNITE Campaign
Sports Awards
All Africa Games, Congo Brazzaville

15. 2015-16 SRSA BUDGET ANALYSIS PER PROGRAMME
Audited Expenditure
Adjusted Expenditure
Revised Estimate
Medium Term Expenditure Estimate
R million
2012/13
2013/14
2014/15
2015/16
Administration
100.3
114.6
131.3
124.8
Active Nation
539.5
607.6
615.2
628.6
Winning Nation
292.5
231.4
88.8
92.2
Sport Support
117.5
115.8
125.6
133.2
Infrastructure Support
4.3
9.3
9.4
9.7
Total
1,054.1
1,073.8
970.4
988.5

16. 2015-16 ENTITIES BUDGET ANALYSIS
Programme
Audited Expenditure
Medium Term Expenditure Estimate
R million m
Boxing SA
R6.5
R7.9
R10.4
R11.0
R11.5
SAIDS
R14.0
R18.5
R19.8
R21.9
R23.0

17. COMMITTEE’S OBSERVATIONS
SRSA
Provinces are unable to spend allocated funds;
Community sport and club development is an urgent requirement;
Non-delivery by local government with regard to building facilities with the MIG that had been allocated for the purpose of building sport and recreation facilities;
Accountability is not enforced for non-delivery of facilities for which money that had been put aside for municipalities and paid to entities or persons;
The misalignment between strategic objectives and outcomes in the department's annual performance plan could result in an audit query;
It seems unlikely that the Provincial Sport Academies Bill, Fitness Industry Bill, South African Combat Sport Bill will be completed within the time frames envisaged by the department;
The backlog in delivering facilities appeared to influence learner numbers in schools as a result of parents choosing to enrol their children at schools that offered access to facilities if they could afford to do so;
SRSA priority to implement the NSRP should be done in phases as suggested by the National Treasury.

18. COMMITTEE’S OBSERVATIONS
BOXING SA AND SAIDS
SAIDS should uphold their independence and avoid being perceived to be biased towards certain federations;
In its operations SAIDS does not endorse any supplementary products and they have a partnership with Virgin Active which assists in ensuring that anti-doping campaigns are promoted within the fitness industry;
There is no established supply chain management unit in SAIDS, however, it uses Trade World Company to process all their procured goods;
SAIDS was moving towards employing a full-time financial manager in order to improve its good corporate governance;
Boxing SA is currently housed within the departmental building in order to reduce its rental expense whilst it is in the process of finding more reasonably priced offices to rent;
The administrative support that Boxing SA receives from SRSA should not compromise its independence;
The three most senior managers of Boxing SA, namely the chief executive officer, the chief financial officer and the director of operations, have been suspended;
The current structure of Boxing SA is not clearly set to ensure that Boxing SA is able to fulfil its mandate and implement its programmes.

19. RECOMMENDATIONS
The Committee recommends that the Minister for Sport and Recreation emphasise the need to:
ensure that the provinces have the capacity to spend allocated funds so as to avoid that it is returned to National Treasury;
develop the framework of how provinces use the DORA funds in line with the priorities of the NSRP as approved by the National Treasury;
improve alignment between the department's Strategic Plan and annual performance plan;
strengthen monitoring systems of the use of DORA funds by the provinces;
ensure that the process of preparing draft legislation is expedited during the financial year;
enforce the compliance of federations towards transformation and the signing of the transformation scorecard;
institute punitive measures for federations' non-compliance on transformation ;

20. RECOMMENDATIONS
The Committee recommends that the Minister for Sport and Recreation emphasise the need to:
consider rewarding federations that have achieved and are exceeding the set targets for transformation;
ensure that the facility count process is completed during the MTEF so that the national facility plan can be implemented;
ensure that Boxing SA is to properly managed to fulfil its mandate;
ensure that all vacant posts are filled in SRSA, and that the recruitment process is fast-tracked to ensure improved service delivery.