1. Chief Financial Officer
QUARTER 2 REPORT
Mr. Lesedi Mere
Chief Financial Officer

2. EXECUTIVE SUMMARY
The departmental financial performance as at 30 September 2017 are as follows:
The overall spending is at R474.7 million which represent 44.5% of the total budget allocation out of a total budget of R1.066 billion.
Spending on Compensation of employees is at 47.6% totalling R50.5 million out of a budget of R106.1 million.
Expenditure on Goods and services is at 46.6% totalling R75.3 million out of a budget of R161.4 million. Expenditure will increase in the third quarter when IG, NRD, SASRecon and Big Walk payments are effected.
Transfer payments’ spending is at 43.5% totalling R346.5 million out of a budget of R796 million.

3. EXECUTIVE SUMMARY NB
DoRA transfers were scheduled to be at 50% in the second quarter (20% Qrt1 and 30% in Qrt2), However 7 of 9 provinces were penalised between 5% and 25% of their second transfer thus the under spending.
Transfers to Departmental Agencies were transferred in Qrt 1, and the spending is at 66.6% which is higher than the arithmetic expected 50% at end of Qrt 2
Payment for Capital Assets expenditure is at 81% totalling R2.4 million out of a budget of R2.9 million. The expenditure has increased following purchasing of some computers and office equipment for some Senior managers and Ministry.

4. OVER ALL DEPARTMENTAL SUMMARY
Economic Classification
Budget
Expenditure
Available Budget
Exp in %
Current Payments
267,566
125,807
141,759
47.0%
Compensation of Employees
106,104
50,516
55,588
47.6%
Goods and Services
161,462
75,291
86,171
46.6%
Transfers and Subsidies/Provinces
796,051
346,473
449,578
43.5%
Provinces and Municipalities
585,828
275,152
310,676
Departmental Agencies and Accounts
34,673
23,091
11,582
66.6%
Non-Profit Institutions
169,178
46,525
122,653
27.5%
Households
6,372
1,705
4,667
26.8%
Capital Assets
2,947
2,388
559
81.0%
Payment for financial assets -
TOTAL
1,066,564
474,668
591,896
44.5%

5. PROGRAMME 1 - ADMINISTRATION
Economic Classification
Budget
Expenditure
Available Budget
Exp in %
Administration
Current Payments
124,822
64,503
60,319
51.7%
Compensation of Employees
75,372
36,614
38,758
48.6%
Goods and Services
49,450
27,889
21,561
56.4%
Transfers and Subsidies 87
636
(549)
731.0%
Departmental Agencies and Accounts -
0.0%
Households
(636)
Capital Assets
2,947
2,388
559
81.0%
Machinery and Equipment
Payments for Financial Asset
TOTAL
127,856
67,527
60,329
52.8%
Overspending on Transfers is due to leave gratuity payments

6. PROGRAMME 2 – ACTIVE NATION
Economic Classification
Budget
Expenditure
Available Budget
Exp in %
Active Nation
Current Payments
77,820
36,862
40,958
47.4%
Compensation of Employees
7,794
4,663
3,131
59.8%
Goods and Services
70,026
32,199
37,827
46.0%
Transfers and Subsidies
626,261
295,370
330,891
47.2%
Provinces and Municipalities
585,828
275,152
310,676
47.0%
Non-Profit Institutions
40,433
20,218
20,215
50.0%
Payments for Financial Asset -
TOTAL
704,081
332,232
371,849
Under spending on Transfers is due penalties on DoRA transfers in Qrt 1

7. PROGRAMME 3 – WINNING NATION
Economic Classification
Budget
Expenditure
Available Budget
Exp in %
Winning Nation
Current Payments
32,735
10,722
22,013
32.8%
Compensation of Employees
3,905
1,442
2,463
36.9%
Goods and Services
28,830
9,280
19,550
32.2%
Transfers and Subsidies
39,176
17,472
21,704
44.6%
Departmental Agencies and Accounts
22,991
11,496
11,495
50.0%
Households
6,372
1,069
5,303
16.8%
Non-Profit Institutions
9,813
4,907
4,906
TOTAL
71,911
28,194
43,717
39.2%
Under spending on Transfers is due slow receiving of invoices from schools/universities (Ministerial bursary)

8. PROGRAMME 4 – SPORT SUPPORT
Economic Classification
Budget
Expenditure
Available Budget
Exp in %
Sport Support
Current Payments
20,134
9,156
10,978
45.5%
Compensation of Employees
14,163
6,428
7,735
45.4%
Goods and Services
5,971
2,728
3,243
45.7%
Transfers and Subsidies
130,527
32,995
97,532
25.3%
Departmental Agencies and Accounts
11,595 -
100.0%
Non-Profit Institutions
118,932
21,400
18.0%
Payments for Capital Assets
TOTAL
150,661
42,151
108,510
28.0%
Under spending on Transfers is due slow transferring to NPIs due to compliance issues

9. PROGRAMME 5 – INFRASTRUCTURE SUPPORT
Economic Classification
Budget
Expenditure
Available Budget
Exp in %
Infrastructure Support
Current Payments
12,055
4,564
7,491
37.9%
Compensation of Employees
4,870
1,369
3,501
28.1%
Goods and Services
7,185
3,195
3,990
44.5%
Payments for Financial Assets -
TOTAL

10. THANK YOU