PRESENTATION TO PARLIAMENT

SELECT COMMITTEE ON APPROPRIATIONS

25 AUGUST 2010

SPENDING FOR THE FIRST QUARTER 2010/11 FINANCIAL YEAR

Programme Original Expenditure Commitments Available %

  Budget as at 30 June 2010   Budget Spent

  R'000 R'000 R'000 R'000  

           

Siyadlala MPP 1 12,000 2,840 747 8,413 23.7

School Sport MPP 2 9,500 1,951 758 6,791 20.5

Legacy Projects 22,104 7,582 1,736 12,786 34.3

           

Total 43,604 12,373 3,241 27,990 28.4

Per Economic Classification

           

Compensation of employees 8,184 2,148 0 6,036 26.2

Goods and Services 35,420 10,225 3,241 21,954 28.9

Transfers and subsidies 0 0 0 0 0

Payments for capital assets 0 0 0 0 0

           

Total 43,604 12,373 3,241 27,990 28.4

SPENDING FOR THE FIRST QUARTER 2010/11 FINANCIAL YEAR - continued

• The total Mass Participation grant spent R12,373 million against a budget of R43,604 during the first quarter.

• This represents 28,4% of the total budget. The grant spent more by 3,4% against the norm of 25%. This is due to the liabilities carried over from the previous financial year (payment of sport equipment which could not be delivered on time by the end of the financial year due to challenges faced at the harbour).

SPENDING FOR THE 2009/10 FINANCIAL YEAR

Programme Adjusted Expenditure Commitments Available %

  Budget as at 31 March 2010   Budget Spent

  R'000 R'000 R'000 R'000  

           

Siyadlala MPP 1 12,894 12,493 191 210 96.9

School Sport MPP 2 9,442 8,696 15 731 92.1

Legacy Projects 28,687 24,722 3,486 479 86.2

           

Total 51,023 45,911 3,692 1,420 90.0

Per Economic Classification

           

Compensation of employees 7,440 6,996 0 444 94.0

Goods and Services 37,283 32,844 3,692 747 88.1

Transfers and subsidies 0 0 0 0 0

Payments for capital assets 6,300 6,071 0 229 0

           

Total 51,023 45,911 3,692 1,420 90.0

SPENDING FOR THE 2009/10 FINANCIAL YEAR - continued

REASONS FOR UNDERSPENDING IN 2009/10 FINANCIALYEAR

• Withholding of an amount of R3 million which was intended to be transferred to the Northern Cape Province but released to our province late in March 2010

• Late delivery of sport equipment by suppliers due to the challenges at the harbour arising from 2010 World Cup activities

SPENDING FOR THE 2008/09 FINANCIAL YEAR

Programme Adjusted Expenditure Commitments Available %

  Budget as at 31 March 2009   Budget Spent

  R'000 R'000 R'000 R'000  

           

Siyadlala MPP 1 8,483 8,372 103 8 98.7

School Sport MPP 2 10,756 9,578 88 1,090 89.0

Legacy Projects 11,375 5,118 48 6,209 45.0

           

Total 30,614 23,068 239 7,307 75.4

Per Economic Classification

           

Compensation of employees 5,512 4,954 0 558 89.9

Goods and Services 19,102 18,114 239 749 94.8

Transfers and subsidies 0 0 0 0 0

Payments for capital assets 6,000 0 0 6,000 0

           

Total 30,614 23,068 239 7,307 75.4

SPENDING FOR THE 2008/09 FINANCIAL YEAR - continued

REASONS FOR UNDERPENDING IN THE 2008/09 FINANCIAL YEAR

• The total Mass Participation grant spent R23,068 million against a budget of R30,614 during the 2008/09 financial year. This represents 75,4% of the total budget. The grant under spent by 24,6%. This is due to the following reasons:-

• Continuous resignations of coordinators from the programme.

• Delay in the finalization of the tender for construction of athletics titan tracks. The amount of R6 million was rolled-over to the 2009/10 financial year.

• Disruption of school enrichment programmes by teacher unions during industrial action

• Recovery Plan by the Department of Education resulted in suspending all school enrichment programmes (including sports programmes)

DATA ON TRENDS IN ALLOCATIONS, TRANSFERS AND ACTUAL EXPENDITURE

  Budget Actual % Spent Budget Actual % Spent Budget Actual % Spent Budget Actual % Spent Budget Actual % Spent Budget Actual % Spent Budget Projected

  2004/05 2004/05   2005/05 2005/06   2006/07 2006/07   2007/08 2007/08   2008/09 2008/09   2009/10 2009/10   2010/11 2010/11

  R'000 R'000   R'000 R'000   R'000 R'000   R'000 R'000   R'000 R'000   R'000 R'000   R'000 R'000

Sport Mass ParticipationProgramme

1,000 980 98 2,670 2,560 96 14,930 11,995 80 26,733 24,118 90 30,615 23,066 75 51,023 45,913 90 43,604 43,604

Total 1,000 980 98 2,670 2,560 96 14,930 11,995 80 26,733 24,118 90 30,615 23,066 75 51,023 45,913 90 43,604 43,604

DATA ON TRENDS IN ALLOCATIONS, TRANSFERS AND ACTUAL EXPENDITURE - continued

• The budget for the Sport Mass Participation grant increased from R1 million in the 2004/05 financial year to R2,670 million in 2005/06 financial year, and increased to R14,930 million in 2006/07 financial year.

• The budget further increased to R23,744 million in 2007/08, R28,241 million in 2008/09, R45,023 million in 2009/10 and reduced to R43,604 million in the 2010/11 financial year.

• The expenditure increased from R0,980 million in 2004/05 financial year to R2,560 million in 2005/06 financial year. It further increased to R11,995 in 2006/07 financial year, R24,118 million in 2007/08 financial year, and reduced to R23,068 in 2008/09 financial year.

• It again increased to R45,913 million in 2009/10 financial year and it is projected to decrease to R43,604 million in the 2010/11 financial year

BRIEF ASSESSMENT OF DEPARTMENTAL MONITORING CAPACITY FOR 2010/11

• The DORA framework for 2010/11 allows Provinces to appoint additional capacity for monitoring and evaluation of the conditional grant not lower than level 13 (utilizing the 6% allocation for filling of posts).

• The Department is also streamlining reporting and monitoring capabilities and assessing models and tools being developed by SRSA (PMU model)

• The PMU model provides a structure with the aim of synchronizing reporting and monitoring capabilities within head office for all three sub-programmes (MPP1, MPP2 and Legacy)

MONTHLY REPORTING BY RECEIVING DEPARTMENTS

• Monthly reporting to SRSA for:– Mass Participation Programme– School Sport Mass Participation Programme and– Legacy

• The monthly reports are submitted to SRSA through forms 14 and 15 as well as statistics. These are quantitative reports which culminate into the submission of quarterly reports that are aligned to the business plan – both a PowerPoint and the performance on progress Excel report.

RI A LIVHUWASIYA THOKOZAREA LEBOGAHI KHENSILETHANK YOU

DANKIE