1. MASS SPORT AND RECREATION PARTICIPATION PROGRAMME GRANT Select Committee on Appropriations National Council of Provinces 23 AUGUST 2011 Presented by: Intergovernmental Relations National Treasury

2. PURPOSE OF THE GRANT To facilitate mass participation within communities and schools through selected activities, empowerment of communities and schools in conjunction with relevant stakeholders Funds are distributed to provinces according to a combination of the following criteria: –Needs analysis; –Performance; –The Equitable Share formula –A base allocation of R10 million

3. Sport, Recreation, Arts and Culture – Mass Sport and Recreation Participation Programme

4. SPENDING AGAINST TRANSFERS RECEIVED There are significant spending divergences across provinces. Eastern Cape, KZN and Northern Cape are spending slowly, and have utilised less than half the funds already transferred into their bank accounts. Free State, Limpopo and Mpumalanga have utilised all transferred funds and in some cases have made additional cash contributions from their equitable share portions of the budget. 4

5. OBSERVATIONS AND ISSUES AFFECTING PROVINCIAL PERFORMANCE Although the grant framework now makes provision for permanent capacity to be established, a number of provinces are still highlighting “capacity challenges” as a reason for poor performance. Only Limpopo, North West and Western Cape have reported appointing any staff for the programme in the 1 st quarter of 2011/12. Persistent non-adherence to business plans remains a challenge. HODs approve business plans but subsequent performance reports reflect deviation from plans by the same departments. Poor reporting by certain provinces. For example: KZN did not submit a performance report for the 1 st quarter as required by the DORA. With the exception of Mpumalanga and Western Cape, no province reported on the “Number of people participating in the SRSA MPP” in the first quarter The submission of incomplete or inaccurate reports is a persistent challenge which affects decision-making processes, including the assessment of budgets and expenditure 5

6. FEEDBACK ON OTHER MATTERS PREVIOUSLY RAISED BUSINESS PLANS: National Treasury has conducted a technical assessment of the business plans for both the 2010/11 and 2011/12 financial years. It must be noted that there has been an improvement in the quality of plans submitted, although actual performance against those plans still needs to improve. CAPACITY NEEDS OF PROVINCES Grant framework for 2011/12 now allows for the appointment of permanent staff 2010 WORLD CUP TICKETS Minister of Finance referred the matter to the Auditor-Genera to investigate. Final assessment will be conducted once audit outcomes are officially available after 31 August 2011. 6

7. THANK YOU 7