1. Chief Financial Officer Sport and Recreation South Africa
PRESENTATION TO THE PORTFOLIO COMMITTEE ON SPORT AND RECREATION ON PROJECTED EXPENDITURE AND REVENUE OVER THE MTEF
Date: 17 April 2017
Mr. Lesedi Mere
Chief Financial Officer
Sport and Recreation South Africa

2. OVERVIEW OF THE PRESENTATION
BUDGET 2018/19 MTEF
OVERVIEW OF THE PRESENTATION
The figures below reflects the budget available for Sport and Recreation SA in the year 2018/19. These have not taken into consideration the actual cost implications to rollout the overall NSRP as approved.
To meet the requirement of citizens access to sport and recreation activities the department is rolling out the following major programmes; Youth Camps, School Sport Championships, Indigenous games and Big Walks, etc. The funding for these is via the conditional grant.
The expenditure on the transformation of the sport sector is done by implementation of development projects which is also part of the sport development grant above.
SRSA

3. OVERVIEW OF THE PRESENTATION - CONTINUED
BUDGET 2018/19 MTEF
OVERVIEW OF THE PRESENTATION - CONTINUED
Currently department is identifying talented athletes and support them to achieve international success. This is done in partnership with recognized sporting institutions.
The department offering enabling mechanisms to support sport and recreation.
Rolling out multi-purpose sport facilities and outdoor gyms.
Supporting the sport and recreation bodies.
SRSA

4. AUDITED OUTCOMES AND BUDGET 2018/2019 MTEF
PROGRAMMES
Audited Outcomes
Un-Audited Outcome
Budget MTEF
2015/16
2016/17
2017/18
2018/19
2019/20
2020/21
R '000
Administration
114.4
117.3
120.0
142.3
150.1
158.4
Active nation
652.2
684.0
716.3
696.8
735.7
777.8
Winning Nation
56.5
62.7
64.2
79.8
84.4
89.2
Sport Support
153.9
147.1
152.0
158.1
168.0
177.6
Sport Infrastructure Support
2.8
12.5
9.2
13.8
15.5
16.5
Total
979.9
1,023.6
1,061.7
1,090.8
1,153.8
1,219.5 4
SRSA

5. Graphical overview of Allocations per programme
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6. AUDITED OUTCOMES AND BUDGET 2018/2019 MTEF- CONTINUED
ECONOMIC CLASSIFICATIONS
AUDITED OUTCOMES
Un-Audited Outcome
Budget MTEF
2015/16
2016/17
2017/18
2018/19
2019/20
2020/21
R '000
Current Payments
256.1
270.1
265.7
278.6
296.4
315.2
Compensation of
93.8
101.3
101.1
111.5
120.1
129.1
Employees
Goods and Services
162.3
168.8
164.6
167.0
176.3
186.1
Transfer Payments
718.6
749.4
793.0
809.8
854.9
901.7
Payment for Capital Assets
5.2
3.5
2.8
2.4
2.5
2.6
Payment for Financial Assets -
0.6
TOTAL
979.9
1,023.6
1,061.7
1,090.8
1,153.8
1,219.5
SRSA

7. Graphical overview of Allocations per Economic Classification
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8. PROGRMME 1: ADMINISTRATION
The purpose of the Programme is to provide strategic leadership, management and support services to the department.
The spending focus over the medium term will be on providing corporate and other support services to the department, which accounts for the dominance of the Corporate Services sub- programme, and providing for the department’s accommodation needs. Thus, the most significant items of expenditure in the programme are compensation of employees, travel and subsistence, and operating leases.
Expenditure on travel and subsistence is mainly to provide for trips to and from Parliament and international travel to meetings, sport events and conventions of the United Nations Educational, Scientific and Cultural Organisation, and the African Union Sports Council meetings taking into consideration cost saving measures.
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9. PROGRMME 1: ADMINISTRATION
The lease for office accommodation is expected to remain stable as department has extended the lease until a Sport House can be financed.
 The department has reprioritised from the external audit function to expand the internal audit function to extend services to federations, public entities and provinces on the management of the mass participation and sport development conditional grant.
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10. PROGRMME 1: ADMINISTRATION
Sub-Programmes
Audited Outcomes
Un-Audited Outcome
Budget MTEF
2015/16
2016/17
2017/18
2018/19
2019/20
2020/21
R '000
Ministry
30.0
27.9
28.5
30.3
32.0
Management
12.9
13.4
20.8
22.2
23.4
Strategic Support
7.3
7.6
6.2
7.9
8.5
9.0
Corporate Services
41.8
38.1
42.2
43.3
45.8
48.6
Office of the Chief Financial Officer
16.9
19.8
18.5
23.7
24.9
Office Accomodation
5.5
10.5
12.3
18.4
19.5
20.5
Total
114.4
117.3
120.0
142.3
150.1
158.4
SRSA

11. PROGRMME 1: ADMINISTRATION
ECONOMIC CLASSIFICATIONS
AUDITED OUTCOMES
Un-Audited Outcome
Budget MTEF
2015/16
2016/17
2017/18
2018/19
2019/20
2020/21
R '000
Current Payments
112.2
115.4
116.2
139.9
147.5
155.7
Compensation of
69.3
74.3
72.6
80.6
84.9
89.7
Employees
Goods and Services
42.9
41.0
43.6
59.3
62.6
66.0
Transfer Payments
0.2
0.3
0.9
0.1
Payment for Capital Assets
2.0
1.6
2.8
2.3
2.5
2.6
Payment for Financial Assets -
TOTAL
114.4
117.3
120.0
142.3
150.1
158.4
SRSA

12. PROGRMME 2: ACTIVE NATION
The purpose of the Programme is to support the provision of mass participation opportunities in sport and recreation.
The spending focus over the medium term will be on promoting mass participation in sport and recreation through the mass participation and sport development conditional grant, which supports school sport, club development, sporting hubs, sport academies and sport councils and accounts for the dominance of expenditure on transfers to provinces in the programme.
SRSA

13. PROGRMME 2: ACTIVE NATION
An average of 90 per cent of the programme’s total allocation over the medium term will be spent on the grant in the Provincial Sport Support and Coordination sub-programme. The management and oversight exercised by the department in respect of the grant partially accounts for the increased expenditure on travel and subsistence, which falls under the Community Sport and School Sport sub-programmes.
School Sport remains a priority for the department as it is the bedrock for sport development in the country, as reflected in the growth in expenditure in the School Sport sub-programme over the MTEF period.
The main activity in this sub-programme is the national school sport championships. Staged annually, the event explains the relative significance of expenditure on travel and subsistence and venues and facilities within expenditure on goods and services.
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14. PROGRMME 2: ACTIVE NATION
Sub-Programmes
Audited Outcomes
Un-Audited Outcome
Budget MTEF
2015/16
2016/17
2017/18
2018/19
2019/20
2020/21
R '000
PRG MNG: Active Nation
4.8
2.3
1.0
4.2
4.4
4.7
Active Recreation -
1.2
1.3
1.4
Community Sport
100.8
99.0
109.0
72.1
76.3
81.8
School Sport
13.3
27.3
20.5
31.9
33.7
36.0
Provincial Sport Support and Coordination
533.2
555.4
585.8
587.4
620.0
653.9
Total
652.2
684.0
716.3
696.8
735.7
777.8
SRSA

15. PROGRMME 2: ACTIVE NATION
ECONOMIC CLASSIFICATIONS
AUDITED OUTCOMES
Un-Audited Outcome
Budget MTEF
2015/16
2016/17
2017/18
2018/19
2019/20
2020/21
R '000
Current Payments
81.5
88.2
90.0
66.6
70.5
76.2
Compensation of
7.6
8.3
9.6
9.0
11.2
Employees
Goods and Services
73.9
79.9
80.4
58.3
61.5
65.0
Transfer Payments
570.7
593.9
626.3
630.2
665.2
701.6
Payment for Capital Assets -
1.9
Payment for Financial Assets
TOTAL
652.2
684.0
716.3
696.8
735.7
777.8
SRSA

16. Division of Revenue Act
MASS PARTICIPATION PROVINCIAL ALLOCATIONS
Province
2018/19
Division of Revenue Act
2019/20
2020/21
R’000
Eastern Cape
67 020
70 994
75 125
Free State
95 986
Gauteng
85 482
91 457
97 300
Kwa-Zulu Natal
98 739
Limpopo
67 679
71 490
75 450
Mpumalanga
46 463
48 408
50 798
Northern Cape
31 319
32 086
32 883
North West
41 855
43 814
45 850
Western Cape
52 843
56 064
59 044
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17. PROGRMME 3: WINNING NATION
The purpose of the Programme is to support the development of elite athletes.
The spending focus over the medium term will be on providing scientific support to emerging and elite athletes in the Operation Excellence Programme (OPEX) as reflected in the Scientific Support sub-programme.
The Programme also support the Ministerial Sports Bursary awarded to learners from Grade 8 until they complete their high school education. These are identified through the school sport programme and placed in the sport focus schools .
The Department transfers funds to the South African Institute for Drug-Free Sport (SAIDS) to assist the institute in ensuring that South Africa complies with the World Anti-Doping Agency code.
SRSA

18. PROGRMME 3: WINNING NATION
The Recognition Systems sub-programme was introduced in 2011/12. Expenditure in this sub-programme from refers to financial incentives paid to athletes for their achievements at international and national events.
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19. PROGRAMME 3 - WINNING NATION
Sub-Programmes
Audited Outcomes
Un-Audited Outcome
Budget MTEF
2015/16
2016/17
2017/18
2018/19
2019/20
2020/21
R '000
PRGM MNG:Winning Nation -
2.4
2.6
2.7
Scientific Support
33.9
39.1
43.6
44.7
47.3
50.0
Major Events Support
8.7
0.3
2.1
12.8
13.5
14.4
Recognition Systems
13.9
23.3
18.5
19.9
21.0
22.1
Total
56.5
62.7
64.2
79.8
84.4
89.2
SRSA

20. PROGRMME 3: WINNING NATION
ECONOMIC CLASSIFICATIONS
AUDITED OUTCOMES
Un-Audited Outcome
Budget MTEF
2015/16
2016/17
2017/18
2018/19
2019/20
2020/21
R '000
Current Payments
27.1
27.6
29.0
38.3
40.7
43.0
Compensation of
2.5
2.8
2.7
3.7
4.1
4.4
Employees
Goods and Services
24.6
24.8
26.3
34.7
36.6
38.6
Transfer Payments
29.4
35.1
35.2
41.5
43.7
46.2
Payment for Capital Assets -
Payment for Financial Assets
TOTAL
56.5
62.7
64.2
79.8
84.4
89.2
SRSA

21. PROGRMME 4 : SPORT SUPPORT
The purpose of the Programme is to develop and support an integrated support system to enhance the delivery of sport and recreation.
The spending focus over the medium term will be on supporting recognised sport and recreation bodies through transfers to non-profit institutions in the Sport and Recreation Service Providers sub-programme. These transfers constitute 52.0 per cent of the programme’s allocation over the medium term and will ensure that sport and recreation bodies are supported in each year of the MTEF period.
The International Relations sub-programme will continue to build and strengthen international bilateral relationships to support sport and recreation development in South Africa by executing exchange programmes with international partners.
SRSA

22. PROGRAMME 4: SPORT SUPPORT
Sub-Programmes
Audited Outcomes
Un-Audited Outcome
Budget MTEF
2015/16
2016/17
2017/18
2018/19
2019/20
2020/21
R '000
PRGM MNG:Sport Support
3.2
3.5
4.3
4.9
5.6
6.0
International Relations
5.3
6.5
6.1
5.4
6.4
Sport and Recreation Service Provider
145.4
137.1
141.6
147.8
156.4
165.2
Total
153.9
147.1
152.0
158.1
168.0
177.6
SRSA

23. PROGRMME 4: SPORT SUPPORT
ECONOMIC CLASSIFICATIONS
AUDITED OUTCOMES
Un-Audited Outcome
Budget MTEF
2015/16
2016/17
2017/18
2018/19
2019/20
2020/21
R '000
Current Payments
35.6
27.0
21.4
20.0
22.2
23.7
Compensation of
12.4
13.9
13.1
13.7
15.5
16.7
Employees
Goods and Services
23.2
13.2
8.3
6.3
6.7
7.0
Transfer Payments
118.3
120.1
130.6
138.1
145.8
153.9
Payment for Capital Assets -
Payment for Financial Assets
TOTAL
147.1
152.0
158.1
168.0
177.6
SRSA

24. PROGRMME 5: SPORT INFRASTRUCTURE SUPPORT
The purpose of the Programme is to regulate and manage the provision of sport and recreation facilities.
The spending focus over the medium term will be on providing outdoor gyms to rural areas that have no sport facilities; completing the national facilities audit; and compiling a national facilities plan.
This planned expenditure is reflected in the Sport and Recreation Facility Management sub-programme, which constitutes 59.0 per cent of total programme expenditure over the medium term.
The provision of outdoor gyms to rural areas also explains the expenditure on contractors across the seven-year period.
SRSA

25. PROGRMME 5: SPORT INFRASTRUCTURE SUPPORT
Sub-Programmes
Audited Outcomes
Un-Audited Outcome
Budget MTEF
2015/16
2016/17
2017/18
2018/19
2019/20
2020/21
R '000
PRGM MNG:Infrastructure support -
0.3
2.5
2.7
Sport and Recreation Facility Management
0.7
8.5
3.1
7.9
9.3
9.9
Sport and Recreation Facility Planning
2.1
4.0
5.8
3.4
3.7
3.9
Total
2.8
12.5
9.2
13.8
15.5
16.5
SRSA

26. PROGRMME 5: SPORT INFRASTRUCTURE SUPPORT
ECONOMIC CLASSIFICATIONS
AUDITED OUTCOMES
Un-Audited Outcome
Budget MTEF
2015/16
2016/17
2017/18
2018/19
2019/20
2020/21
R '000
Current Payments
2.8
12.0
9.2
13.8
15.5
16.5
Compensation of
2.0
2.1
3.2
5.2
6.5
7.0
Employees
Goods and Services
0.8
9.9
6.0
8.6
9.0
9.5
Transfer Payments -
Payment for Capital Assets
Payment for Financial Assets
0.6
TOTAL
12.6
SRSA

27. TRANSFERS TO PUBLIC ENTITIES
Budget MTEF
2018/19
2019/20
2020/21
R '000
Boxing South Africa
12.3
13.0
13.7
South African Institute for Drug-Free Sport
24.3
25.7
27.1
Total
36.6
38.7
40.8
SRSA

28. DEPARTMENTAL REVENUE COLLECTIONS
Audited Outcomes
Un-Audited Outcome
Budget MTEF
2015/16
2016/17
2017/18
2018/19
2019/20
2020/21
R '000
Rental Parking covered and open
39.0
40.0
39.2
41.0
42.0
Commission on Insurance and Garnishee
21.0
23.0
26.8
26.0
Replacement of lost office Property -
1.0
2.0
Interest, dividends and rent on land
1.9
3.0
Sales of Assets <R5000
Transactions in financial assets and liabilities
344.0
33.0
84.4
270.0
Total
406.0
97.0
153.1
340.0
341.0
343.0
SRSA

29. DEPARTMENTAL REVENUE COLLECTIONS
Departmental Receipts
The Department’s revenue generating capacity is limited and revenue collected consists mainly of parking fees from officials, and recoveries of expenditure or payments with regards to claims for recovery of goods or services.
Other revenue sources include miscellaneous interest from debt recoveries and commission received for commission on insurance and garnishee.
Total departmental own receipts show an increase from R in 2016/17 to R in 2017/18 which represent a 57.0% growth.
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30. THANK YOU 30
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