1. Annual Financial Statements for the year ended 31 March 2017
VOLLEY 5:
Annual Financial Statements
for the year ended 31 March 2017

2. REVENUE
SRSA is amongst the non-revenue generating government departments.
The revenue for the Department is mainly made up of the annual appropriation received from the National Revenue Fund.
SRSA was appropriated an amount of R billion for the financial year under review.
SRSA also generated an amount of R97 thousand from: interest from bank account, recovery of telephone & parking expenses, and other staff debts.

3. EXPENDITURE
The Department expensed almost all funds allocated in the current financial year.
The amount to be surrendered is only R2 978 million of the R1 027 billion appropriated from the Revenue Fund.
The funds utilized amounts to 99,7% translating into R1 024 billion of the allocated funds.

4. EXPENDITURE (continued)
The R2 978 million underspent was mainly in the
following Economic Classifications:
Goods and services - R2 249 million
Transfers payments - R452 thousand
Compensation of Employees - R290 thousand
The detailed breakdown of expenditure is included in the Appropriation Statement and the Notes to the Annual Financial Statements.

5. EXPENDITURE (continued)
DEPARTMENT OF SPORT & RECREATION SA
Final Appropriation
Actual Expenditure
Variance
Expenditure as a %
of final
Appropriation
R'000 %
Current Expenditure
Compensation of employees
290
99.7%
Goods and services
2 249
98.7%
Transfers and Subsidies
Provinces & Municiaplities
330
99.9%
Departmental agencies and accounts
33 012
32 997 15
100%
Non-profit institutions -
Households
4 200
4 093
107
97.5%

6. EXPENDITURE (continued)
DEPARTMENT OF SPORT & RECREATION SA
Final Appropriation
Actual Expenditure
Variance
Expenditure as a %
of final
Appropriation
R'000 %
Payments for capital assets
Machinery and equipment
4 099
3 540
559
86.4%

7. EXPENDITURE (continued)
Expenditure is therefore broken down as follows in terms of Appropriation per Economic Classification:
1. Compensation of Employees
The spending on compensation to employees is 99.7% for the year under review.
This was achieved because there was a virement of R5 000 million to goods and services effected during the year.
This was to enable the Department to defray over-expenditure on departmental projects.

8. EXPENDITURE (continued)
2. Goods and services
The spending on Goods and Services is 98.7% for the year under review.
The under-expenditure was due to additional earmarked fund for MIG.

9. EXPENDITURE (continued)
3. Transfers and Subsidies
The spending on Transfers and Subsidies is R749 million which represent 99.9% of the appropriated amount, this simply means that SRSA did not under-spend on this budget item. Transfers and Subsidies was therefore broken as follows:
To Provinces - R555 million which represent 99.9% of the Transfers and Subsidies budget
To Non-Profit Institutions (Clubs and Federation) - 100% of the Transfers and Subsidies budget, which translates into R156 million

10. EXPENDITURE (continued)
To Boxing SA and South African Institute for Drug Free Sport – R32.9 million which is 100% of the Transfers and Subsidies budget.
To Households – R4 million which represent 97.5% of the Transfers and Subsidies budget
4. Payments for Capital Assets
The spending on Payment for Capital Assets was 86.4% for the year under review.
This represent actual expenditure of R3 540 million out of appropriated budget of R4 099 million.

11. EXPENDITURE (continued) EXPENDITURE AGAINST BUDGET 2014/15 TO 2016/17
Financial year
Budget
R’000
Expenditure
Percent
2014/15
99.6%
2015/16
99.9%
2016/17
99.7%

12. EXPENDITURE (continued) EXPENDITURE 2016/17 PER PROGRAMME
Final
Appropriation
Actual
Expenditure
Variane
Expenditure as
a % of Final
R'000 %
Administration
489
99.6%
Active Nation
420
99.9%
Winning
Nation
63 155
62 684
471
99.3%
Sport Support
132

13. EXPENDITURE (continued) EXPENDITURE 2016/17 PER PROGRAMME
Final
Appropriation
Actual
Expenditure
Variance
as a %
of Final
R'000 %
Infrastructure Support
13 992
12 526
1 466
89.5%

14. TRANSFER PAYMENTS Name of institution Final Appropriation R’000
Amount Transferred
Provincial Conditional Grant
Boxing SA
11 033
SA Institute for Drug-Free Sport
21 896
CATHSSETA 83 68
Households
4 200
4 093

15. TRANSFER PAYMENTS (continued)
Name of institution
Final Appropriation
R’000
Amount Transferred
National Federations

16. MASS PARTICIPATION PROVINCIAL ALLOCATIONS
Province
2016/17
Division of Revenue Act
Roll Overs
Total Available
Actual
Transfer
Amount spent by depart-ment
% of funds spent by department
R’000
R'000 %
Eastern Cape
67 137 -
66 194
98.6%
Free State
66 461
66 356
99.8%
Gauteng
83 616
100%
Kwa-Zulu Natal
98 090
Limpopo
67 033
66 391
99%
Mpumalanga
46 743
46 482
99.4%
Northern Cape
31 413
North West
42 250
5 631
47 881
41 920
41 436
87.1%

17. MASS PARTICIPATION PROVINCIAL ALLOCATIONS (continued)
Province
2016/17
Division of Revenue Act
Roll Overs
Total Available
Actual
Transfer
Amount spent by depart-ment
% of funds spent by department
R’000
R'000 %
Western Cape
52 965 -
52 889
99.9%
8 680
98.5%

18. MASS PARTICIPATION PROVINCIAL ALLOCATIONS (continued)
North West province was penalised 5% of their first Provincial transfer for non – compliance, amounting to R330 thousand

19. OVERALL CHALLENGES & ACHIEVEMENT
There are still few gaps and weaknesses in the departmental Internal Control Systems which have been noted by the Auditor General during the audit.
Those few gaps and weaknesses have been included in the Management Report issued by the Auditor General.
The Department has already developed an Action Plan to address the issues raised in the Management Report.

20. OVERALL CHALLENGES & ACHIEVEMENT
Achievements:
Unqualified opinion from AG for four (4) consecutive years.
Tremendous improvement on payment of suppliers within 30 days.
No emphasis of matters reported by the AG on performance
and financial information.
Reduction in number of issues raised by the AG.

21. AUDITOR GENERAL’S REPORT
I have evaluated the reported performance information against the overall criteria of usefulness and reliability.
I evaluated the usefulness of the reported performance information to determine whether it was presented in accordance with the National Treasury’s annual reporting principles and whether the reported performance was consistent with the planned programmes.
I further performed tests to determine whether indicators and targets were well defined, verifiable, specific, measurable, time bound and relevant, as required by the National Treasury’s Framework for managing programme performance information (FMPPI).

22. AUDITOR GENERAL’S REPORT (continued)
I assessed the reliability of the reported performance information to determine whether it was valid, accurate and complete.
I did not identify any material findings on the usefulness and reliability of the reported performance information for the following programmes: Active Nation, Winning Nation and Sport Infrastructure Support.
Opinion
In my opinion, the financial statements present fairly, in all material respects, the financial position of the Department of Sport and Recreation South Africa as at 31 March 2016 and its financial performance and cash flows for the year then ended,

23. AUDITOR GENERAL’S REPORT (continued)
in accordance with the Modified Cash Standards as prescribed by National Treasury and the requirements of the PFMA and DoRA.

24. WORKING TOGETHER, WE CAN CONTINUE TO MAINTAIN THE DEPARTMENTAL CLEAN AUDIT.
We’ll now take questions and advice from the Honourable Members.
Thank You.
Mr Alec Moemi
ACCOUNTING OFFICER