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FINANCIAL REPORT QTR1 2014/15

Presentation to the Portfolio Committee

16 September 2014

Vote 20

Financial Report 2014/15

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EXECUTIVE SUMMARY

•The purpose of this report is to provide a narrative explanation of the expenditure trends with a detailed analysis and comments of expenditure per programme and per economic classification for the period ended on 30 June 2014.

•The Department’s financial performance in the 1st quarter of 2014/2015 financial year are as follows:

• The overall spending is at R239.9 million which represent 25% of the total budget allocation. This is within the norm in terms of arithmetic forecast as its equivalent to quarter.

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EXECUTIVE SUMMARY

•Spending on Compensation of employees is at 19%. There is 6% 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. The filling of vacancies has been delayed due to the moratorium of recruitment as agreed at the Departmental Bargaining Forum. This was to allow the organizational review process to be completed before posts are filled on the revised Establishment.

•Expenditure on goods and services is at 11% totalling R18.9 million. This is 14% lower than 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.

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EXECUTIVE SUMMARY

•Transfer payments’ spending is 29% which is 4% higher than the arithmetic forecast. It must however be noted that the transfers are processed as per the approved cahsflow.

•Payment for capital assets expenditure is at 11%, the expenditure is expected to increase once the procurement of IT equipment and software are processed.

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GRAPHICAL VIEW OF THE BUDGET PER ECONOMIC CLASSIFICATION FOR 2014/15 FINANCIAL YEAR

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GRAPHICAL VIEW OF THE BUDGET PER PROGRAMME FOR 2014/15 FINANCIAL

YEAR

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SRSA CEXPENDITURE REPORT AS AT 30 JUNE 2014

DEPARTMENT OF SPORT & RECREATION SA

Budget Expenditure % Spent

R'000 R'000 % Compensation of employees 103,022 19,943 19% Goods and services 166,443 18,980 11% Administrative Fees 830 8 1% Advertising 6,362 2,166 34% Catering 2,804 417 15% Communication 4,699 598 13% Contractors 61,620 1,574 3% Consultants 3,234 - 0% Audit Costs 4,087 1,030 25% Agency 520 157 30% Training & Development 1,160 545 47% Entertainment 70 9 13% Inventory 4,222 685 16% Travel & Subsistence 34,573 6,808 20% Operating Payments 3,301 1,944 59% Venues & Facilities 13,904 282 2% Other 23,675 2,749 12% Assets<R5000 1,382 8 1% Total current payments 269,465 38,923 14%

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SRSA CEXPENDITURE REPORT AS AT 30 JUNE 2014

DEPARTMENT OF SPORT & RECREATION SA

Budget Expenditure % Spent

Provinces 525,632 176,159 34% Municipalities - 48 0% Departmental agencies and accounts 22,811 22,473 99% Non-profit institutions 150,329 2,000 1% Households - 92 0% Total Transfers and Subsidies 698,772 200,772 29% Payments for capital assets Machinery and equipment 2,167 237 11% Total payments for capital assets 2,167 237 11%

Total 970,404 239,932 25%

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PROGRAMME 2 ACTIVE NATION EXPENDITURE REPORT AS AT 30 JUNE 2014

PROGRAMME 2 ACTIVE NATION Budget Expenditure % Spent

R'000 R'000 % Compensation of employees 16,266 1,710 11% Goods and services 37,966 2,117 6% Administrative Fees 60 - 0% Advertising 1,177 978 83% Catering 638 29 5% Communication 950 54 6% Contractors 13,007 19 0% Training & Development 45 - 0% Entertainment - - 0% Inventory 1,259 180 14% Travel & Subsistence 16,048 331 2% Operating Payments 587 511 87% Venues & Facilities 3,574 12 0% Assets<R5000 621 3 0% Total current payments 269,465 38,923 7%

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PROGRAMME 2 ACTIVE NATION EXPENDITURE REPORT

AS AT 30 JUNE 2014

PROGRAMME 2 ACTIVE NATION Budget Expenditure % Spent

R'000 R'000 %

Provinces 525,632 176,159 34% Municipalities - 0% Departmental agencies and accounts 0% Non-profit institutions 35,333 0%

- 0% Total Transfers and Subsidies 560,965 176,159 31% Payments for capital assets Machinery and equipment Total payments for capital assets Total 615,197 179,986 29%

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PROGRAMME 3 WINNING NATION EXPENDITURE REPORT AS AT 30 JUNE 2014

PROGRAMME 3 WINNING NATION Budget Expenditure % Spent

R'000 R'000 % Compensation of employees 8,786 549 6% Goods and services 55,605 873 2% Administrative Fees 717 - 0% Advertising 1,767 - 0% Catering 667 8 1% Communication 773 17 2% Contractors 36,912 141 0% Consultants 1,123 - 0% Training & Development - 3 0% Inventory 354 247 70% Travel & Subsistence 4,111 422 10% Operating Payments 1,013 35 3% Venues & Facilities 7,931 - 0% Assets<R5000 237 - 0% Total current payments 64,391 1,422 2%

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PROGRAMME 3 WINNING NATION EXPENDITURE REPORT AS AT 30 JUNE 2014

PROGRAMME 3 WINNING NATION

Budget Expenditure % Spent

R'000 R'000 % Provinces 0% Municipalities - 0% Departmental agencies and accounts 14,790 18,504 125% Non-profit institutions 12,141 0% Households - 0% Total Transfers and Subsidies 26,931 18,504 69% Payments for capital assets Machinery and equipment Total payments for capital assets

Total 91,322 19,926 22%

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PROGRAMME 4 SPORT SUPPORT EXPENDITURE REPORT AS AT 30 JUNE 2014

PROGRAMME 4 SPORT SUPPORT

Budget Expenditure % Spent

Current payments R'000 R'000 % Compensation of employees 4,186 3,101 74.08% Goods and services 7,181 7,550 105.14% Advertising 620 1,080 174% Catering 412 368 89% Communication 371 49 13% Contractors 2,109 81 4% Consultants 400 - 0% Agency 20 - 0% Training & Development - 542 0% Entertainment 30 - 0% Inventory 290 64 22% Travel & Subsistence 1,842 4,067 221% Operating Payments 292 1,197 410% Venues & Facilities 725 102 14% Assets<R5000 70 - 0% Total current payments 11,367 10,651 94%

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PROGRAMME 4 SPORT SUPPORT EXPENDITURE REPORT AS AT 30 JUNE 2014

PROGRAMME 4 SPORT SUPPORT Budget Expenditure % Spent

R'000 R'000 % Provinces 0% Municipalities - 0% Departmental agencies and accounts 7,945 3,950 50% Non-profit institutions 102,855 2000 2% Households - 0% Total Transfers and Subsidies 110,800 5,950 5% Payments for capital assets Machinery and equipment Total payments for capital assets Total 122,167 16,601 14%

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PROGRAMME 5 INFRASTRUCTURE EXPENDITURE REPORT AS AT 30 JUNE 2014

PROGRAMME 4 SPORT SUPPORT Budget Expenditure % Spent

Current payments R'000 R'000 % Compensation of employees 3,685 512 14% Goods and services 6,716 96 1% Administrative Fees - - 0% Advertising 36 9 25% Communication 205 8 4% Contractors 5,186 - 0% Inventory 37 - 0% Travel & Subsistence 1,145 72 6% Operating Payments 107 5 5% Venues & Facilities - - Other - - 0% Assets<R5000 - 2 0% Total current payments 10,401 608 6%

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PROGRAMME 5 INFRASTRUCTURE EXPENDITURE REPORT AS AT 30 JUNE 2014

PROGRAMME 4 SPORT SUPPORT

Budget Expenditure % Spent

R'000 R'000 %  

Venues & Facilities - - Other - - 0% Provinces 0% Municipalities - 48 0% Departmental agencies and accounts 0% Non-profit institutions 0% Households - 0% Total Transfers and Subsidies 48 0% Payments for capital assets Machinery and equipment Total payments for capital assets Total 10,401 656 6%

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THANK YOU