1. Presentation to the Portfolio Committee
BUDGET 2014/15
Presentation to the Portfolio Committee
08 July 2014
Vote 20
Budget 2014/15
SRSA

2. BUDGET 2014/15
The figures below reflects the budget available for Sport and Recreation SA in the year 2014/15. 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 programmes; Youth Camps, School Sport Championships, Indigenous games and Big Walks in the next three years.
The funding for these is via the conditional grant which increases from R497.2 million in 2013/14 to R525.6 million in the 2014/15.
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. BUDGET – COMMENTS 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 allocated R44.7 million in 2013/14 and this increased to R60.2 in 2014/15.
The department offering enabling mechanisms to support sport and recreation;
Rolling out multi-purpose sport facilities and outdoor gyms with a budget of R4.0 million in 2013/14 increasing to R10.4 million in the current year.
Supporting the sport federation with the amount of R97.0 million in the year 2013/14 and increasing to R113.3 million in the outer year.
SRSA

4. AUDITED OUTCOMES 2011/12 TO 2013/14 AND BUDGET 2014/2015
2012/13
2013/14
2014/15
R '000
Administration
Active nation
Winning Nation
91 300
Sport Support
88 300
Infratsructure
4 000
4 300
10 400
Total 4
SRSA
SRSA

5. AUDITED OUTCOMES 2011/12 TO 2013/14 AND BUDGET 2014/2015 Continued
2012/13
2013/14
2014/15
R '000
Current Payments
Compensation of employees
73 100
73 700
63 600
Goods and Services
Administration fees
1 500
100
800
Advertising
7 800
25 400
4 000
5 700
Monor Assets
1 000
400
1 400
Audit cost: External
4 300
5 200
3 500
5 100
Bursaries: Employees
200
700
Catering
1 800
2 700
1 200
1 700
Communication
3 400
4 500
4 700
Computer services
Consultants
Contractors
30 700
40 800
79 200
65 300 5
SRSA
SRSA

6. AUDITED OUTCOMES 2011/12 TO 2013/14 AND BUDGET 2014/2015 Continued
2012/13
2013/14
2014/15
R '000
Agency services
200
Entertainment
Inventory: Fuel, oil and gas
Inventory: Medicine
100
300
Inventory: Other supplies
1 100
1 700
Consumable: Stationery
1 300
1 400
2 500
Operating leases
6 600
700
14 600
19 000
Property payments
3 700
2 800
3 100
Transport: Dept activity
2 400
1 000
500
2 300
Travel and subsistence
36 400
33 600
28 100
36 500
Training and development
1 200
Operating payments
4 100
8 100
3 300
Venues and facilities
12 200
15 400
18 500
10 100 6
SRSA
SRSA

7. AUDITED OUTCOMES 2011/12 TO 2013/14 AND BUDGET 2014/2015 Continued
2012/13
2013/14
2014/15
R '000
Transfers and subsidies
Provinces
Municipalities
Departmental agencies
21 800
19 000
20 600
26 500
International organisations
16 700
Non-profit institutions
Households
100
Payments for capital assets
1 200
2 200
Machinery and equipment
1 000
Software
200
Total 7
SRSA
SRSA

8. AUDITED OUTCOMES 2011/12 TO 2013/14 AND BUDGET 2014/2015 Continued
2012/13
2013/14
2014/15
R '000
Agency services
200
Entertainment
Inventory: Fuel, oil and gas
Inventory: Medicine
100
300
Inventory: Other supplies
1 100
1 700
Consumable: Stationery
1 300
1 400
2 500
Operating leases
6 600
700
14 600
19 000
Property payments
3 700
2 800
3 100
Transport: Dept activity
2 400
1 000
500
2 300
Travel and subsistence
36 400
33 600
28 100
36 500
Training and development
1 200
Operating payments
4 100
8 100
3 300
Venues and facilities
12 200
15 400
18 500
10 100 8
SRSA
SRSA

9. Division of Revenue Act
MASS PARTICIPATION PROVINCIAL ALLOCATIONS
Province
2012/13
Division of Revenue Act
2013/14
2014/15
R’000
Eastern Cape
66 056
61 334
64,895
Free State
34 371
38 832
40,318
Gauteng
73 930
88 269
94,915
Kwa-Zulu Natal
91 122
79 883
85,435
Limpopo
55 733
56 529
59,446
Mpumalanga
39 883
44 772
46,959
Northern Cape
27 404
30 806
31,450
North West
36 497
41 596
43,503
Western Cape
44 644
55 570
58,711
525,632 9
SRSA
SRSA

10. Graphical overview of Allocations per programme
SRSA 10
SRSA

11. Analaysis of Allocations per Classification
Compensation of employees
10.6%
Goods and Services
17.1%
Provinces
54.2%
Departmental agencies
26 500
2.7%
Non-profit institutions
15.1%
Capital Expenditure
2 200
0.2%
Total 11
SRSA
SRSA

12. Graphical overview of Allocations per Classification
SRSA 12
SRSA

13. COMMENTS ON PROGRMME 1: ADMINISTRATION
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.
SRSA

14. COMMENTS ON PROGRMME 1: ADMINISTRATION (continued)
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.
The lease for office accommodation constitutes 7 per cent of the budget between and is expected to remain stable as department will be extending the lease until a Sport House can be financed.
 The department will be 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.
SRSA

15. Office of the Chief Financial Officer 14 900 14 500 19 900
ADMINISTRATION
Administration
2011/12
2012/13
2013/14
2014/15
R '000
Ministry
28 400
30 600
26 800
20 400
Management
13 700
14 200
15 400
18 600
Strategic Support
5 000
4 900
5 600
6 600
Corporate Services
34 400
34 600
42 900
44 200
Office of the Chief Financial Officer
14 900
14 500
19 900
Office Accommodation
5 400
2 200
19 600
21 700
SRSA

16. COMMENTS ON PROGRMME 2: ACTIVE NATION
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.
An average of 85 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.
SRSA

17. COMMENTS ON PROGRMME 2: ACTIVE NATION (continued)
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 South African national school sport championship. Staged annually, the event explains the relative significance of expenditure on travel and subsistence and venues and facilities within expenditure on goods and services.
SRSA

18. Provincial Sport Support and Coordination 452 000 469 600 497 600
ACTIVE NATION
Active Nation
2011/12
2012/13
2013/14
2014/15
R '000
Programme Management
400
200
2 300
2 600
Active Recreation
900
1 000
Community Sport
48 000
43 200
81 900
53 800
School Sport
12 200
25 600
9 600
32 200
Provincial Sport Support and Coordination
SRSA

19. COMMENTS ON PROGRMME 2: WINNING NATION
The spending focus over the medium term will be on providing scientific support to athletes as reflected in the Scientific Support sub-programme. In this period, the sub-programme will receive an additional allocation of R13.3 million for the transfer to the South African Institute for Drug-Free Sport. The additional funds are to assist the institute in ensuring that South Africa complies with the World Anti-Doping Agency code.
Expenditure on contractors in the Scientific Support sub-programme grew significantly from 2010/11 to 2013/14, due to the department intensifying support for elite athletes through high performance centres in preparation for major events over this period, including the 2012 Olympic Games.
SRSA

20. COMMENTS ON PROGRMME 3: WINNING NATION (continued)
The fluctuations in the transfers to non-profit institutions are due to once-off allocations of R84 million in 2012/13 to host the 2013 Africa Cup of Nations, and R36 million in 2013/14 for the 2014 African Nations Championship. As a result, spending in the Major Events sub-programme fluctuates between 2010/11 and 2013/14.
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.
As part of Cabinet approved budget reductions, the Recognition Systems sub-programme expenditure was reduced by R3.4 million over the medium term. The impact of this reduction on service delivery will be minimised as private sector donors are brought in to augment funding for the recognition of performances.
SRSA

21. Programme Management: 1 700 1 800 1 900 2 000
WINNING NATION
Winning Nation
2011/12
2012/13
2013/14
2014/15
R '000
Programme Management:
1 700
1 800
1 900
2 000
Scientific Support
38 300
48 600
44 700
60 200
Major Events Support
43 100
10 300
Recognition Systems
20 000
17 100
21 900
18 800
Total
91 300
SRSA

22. COMMENTS ON PROGRMME 4 : SPORT SUPPORT
The spending focus over the medium term will be on supporting recognised sport federations through transfers to non-profit institutions in the Sport and Recreation Service Providers sub-programme. These transfers constitute 83.6 per cent of the programme’s allocation over the medium term and will ensure that 60 sport federations are supported in each year of the MTEF period.
The International Liaison sub-programme is projected to have a negative average annual growth over the medium term due to the implementation of efficiency measures in international travel, which include smaller delegations being sent to international events.
SRSA

23. Programme Management: Sport Support 2 900 3 000 1 900
2011/12
2012/13
2013/14
2014/15
R '000
Programme Management: Sport Support
2 900
3 000
1 900
International Liaison
4 600
4 700
3 400
2 400
Sport and Recreation Service Providers
80 800
TOTAL
88 300
SRSA

24. COMMENTS ON PROGRMME 5: INFRASTRUCTURE SUPPORT
The spending focus over the medium term will be on providing 18 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 49.5 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 24
SRSA

25. INFRASTRUCTURE SUPPORT
Infrastruture Support
2011/12
2012/13
2013/14
2014/15
R '000
Programme Management: Infrastructure Support
100
1 000
1 900
2 000
Sport and Recreation Facility Management
1 400
4 600
5 200
Sport and Recreation Facility Planning
2 500
3 200
2 800
Total
4 000
4 300
9 300
10 400
SRSA

26. THANK YOU 26
SRSA
SRSA