1. PRESENTATION TO THE PORTFOLIO COMMITTEE ON SRSA PERFORMANCE QUARTER 1 OF THE 2015/16 FINANCIAL YEAR 22 September 2015 Mr Alec Moemi - DG: SRSA

2. EXECUTIVE SUMMARY The departmental financial performance in the first quarter of 2015/2016 financial year are as follows: o The overall spending is at R240,6 million which represent 24% of the total budget allocation. This is within the norm in terms of arithmetic forecast (25%) as its equivalent to three months. o Spending on Compensation of employees is at 22% totalling R21,8 million. There is 3% under spending due to vacant posts of e.g. Director: IT, Finance and School Sport. Other vacancies for junior and middle management positions as well as lower levels posts also contributed to the under spending. During the 2015/16 financial year management has approved advertising of all prioritised vacant posts. o The filling of vacancies is underway as compared to last financial year this time we had a 6% under spending. This was to allow the organizational review process to be completed before posts are filled on the revised establishment. BUDGET AND EXPENDITURE ANALYSIS AS AT 30 JUNE 2015

3. BUDGET EXPENDITURE ANALYSIS AS AT 30 JUNE 2015 o Expenditure on goods and services is at 13% totalling R21.2 million. The acceptable arithmetic forecast of 25%. It must be noted that most of the departmental projects are rolled out in the second and third quarter of the year thus, there is an under spending of 12%. o Transfer payments’ spending is 27% totalling R197,4 million, which is 2% more than the arithmetic forecast. It must however be noted that the transfers are processed as per the approved cash flow. o Payment for capital assets expenditure is at 7% the expenditure is expected to increase once the procurement of IT equipment and software are processed

4. GRAPHICAL VIEW OF THE BUDGET PER ECONOMIC CLASSIFICATION FOR 2015/16 FINANCIAL YEAR

5. BUDGET PER PROGRAMME FOR 2015/16 FINANCIAL YEAR

6. EXPENDITURE ON COMPENSATION OF EMPLOYEES AS AT 30 JUNE 2015 COMPENSATION OF EMPLOYEES PROGRAMMEBUDGETAPRMAYJUNETOTAL EXP TOTAL AVAILABLE % SPENT ADMINTISTRATION66,0054,4196,0185,56516,00250,00324% ACTIVE NATION16,4245735954501,61814,80610% WINNING NATION7,306189180 5496,7578% SPORT SUPPORT8,0818481,0891,1963,1334,94839% INFRASTRUCTURE2,8891622371785772,31220% TOTAL100,7056,1918,1197,56921,87978,82622%

7. EXPENDITURE ON COMPENSATION OF EMPLOYEES AS AT 30 JUNE 2015 o For the period of three months the ideal percentage spent should be 25%, however the overall expenditure for compensation of employees is at 22% which is 3% below the ideal percentage. o This is mainly due to vacant posts especially those of senior managers, e.g. Director School Sport, Director IT and Director Finance

8. EXPENDITURE ON GOODS AND SERVICES AS AT 30 JUNE 2015 GOODS & SERVICES PROGRAMMEBUDGETAPRMAYJUNETOTAL EXP TOTAL AVAILABLE % SPENT ADMINTISTRATION56,5771,5894,7613,3529,70246,87517% ACTIVE NATION38,3163,6704401,3085,41832,89814% WINNING NATION56,2151859707661,92154,2943% SPORT SUPPORT7,1095701,3012,0373,9083,20155% INFRASTRUCTURE6,78922264343206,4695% TOTAL165,0066,0367,7367,49721,269143,73713%

9. EXPENDITURE ON GOODS AND SERVICES o Total expenditure for goods and services is currently at R21.3 million which represents 13% of the total budget and this does not take into account the known commitments of R4.4 million. The commitments mainly resulted from insufficient supporting documentations which then prevents processing and final authorisation of payments. Programme 1 o Expenditure is at 17% for the period of three months which is less than nominal rate of 25 % by 8%. Programme 2 o The total spending rate is 14%, under spending by 11%, with School Sport at 4%, Community Sport at 34%. o Programme manager is at 13%. Transfers to the provinces are at 33%. o The spending in school sport will increase once the Ministerial Sports Bursary claims are paid, and School Sport Championship claims and invoices are paid. The overspending in Community Sport is because of payments for the memorial service of the late Dr. Steve Mokone.

10. EXPENDITURE ON GOODS AND SERVICES Programme 3 The total spending rate is 3%, under spending by 22%, with Scientific Support at 3%. Major Events is at 9%. Programme manager there is no spending because at the moment there is no Programme manager. Recognition System is at 2%, the spending will increased after the Sports Awards. Programme 4 The spending rate is at 55%. The programme manager spending is at 2%. Expenditure for International Liaison is at 24% which is the ideal percentage of 25%. The Sport Service Providers is at 71% which is 46% more than nominal rate. This substantial increase is due to payments for Basketball National League, implementation of the Brutal Fruit Netball Premier League and also due to support provided to the Eminent Person Group (EPG) on Transformation in Sport

11. EXPENDITURE ON GOODS AND SERVICES Programme 5 The spending rate is at 5% for the period of three months which is less than nominal rate of 25% It is projected that the expenditure will increase once the unit commence with the monitoring of KWF donation and development of sport facilities

12. PROGRAMME 3: WINNING NATIONEXPENDITURE ON TRANSFER PAYMENTS TRANSFERS AND SUBSIDIES ITEMBUDGETAPRMAYJUNETOTAL EXP TOTAL AVAILABLE % SPENT PROVINCES537,2940179,077 0 358,21733% MUNICIPALITIES0 0 0 0000% DEPARTMENTAL AGENCIES & ACCOUNTS 30,3630000 0% NON-PROFIT INSTITUTIONS 153,0130018,306 134,70712% HOUSEHOLD 42951-510% TOTAL TRANSERS & SUBSID 720,6700179,11918,315197,434523,23627% Transfer Payments o The under spending in departmental agency is due to non compliance of Boxing S.A, the expenditure for non-profit institutions will increased once the first transfer to Federations is done

13. PAYMENTS FOR CAPITAL ASSETS CAPITAL ASSETS ITEMBUDGETAPRMAYJUNETOTAL EXP TOTAL AVAILABLE % SPENT MACHINERY AND EQUIPMENT 2,1677041541652,0028% SOFTWARE AND OTHER INTANGIBLE ASSETS 0000000% TOTAL FOR CAPITAL ASSETS 2,16704154 165 2,0028% Payments for Capital Assets o The under spending for capital assets the purchasing of new computers and fixing of the departmental excess doors not yet being approved