1. BRIEFING TO THE STANDING COMMITTEE ON APPROPRIATIONS ON THE FINANCE BILL The Presidency and the Department of Women, Children and People with Disabilities Presenter: Gillian Wilson| Public Finance : Governance and Administrative Services, National Treasury | 06 November 2015

2. Presentation outline Summary of the Finance Bill [B31-2015] 2008/09 Unauthorised expenditure for the Presidency 2010/11 Unauthorised expenditure for the Presidency 2010/11 Unauthorised expenditure for the Department of Women, Children and People with Disabilities 2

3. Finance Bill [B31-2015] The Bill is aimed at implementing the recommendations of the Standing Committee on Public Accounts on unauthorised expenditure and funding mechanism The recommendations were adopted by the National Assembly on 23 June 2015 The Finance Bill provides for the authorisation of national government unauthorised expenditure arising from the 2004/05, 2007/08, 2008/09 and 2010/11 financial years The Bill follows the procedure for authorisation of unauthorised expenditure as outlined in section 34(1)(a) and (b) of the Public Finance Management Act,1999 (PFMA) 3

4. Finance Bill [B31-2015] The following presentation is confined to the treatment of unauthorised expenditure incurred by two of the four affected national departments mentioned in the Bill, namely, The Presidency and the Department of Women, Children and People with Disabilities. In terms of which, the Bill authorised that unauthorised expenditure incurred by the Presidency (2008/09 and 2010/11) and the Department of Women, Children and People with Disabilities (2010/11) be appropriated as direct charge against the National Revenue Fund to cover the overspending of the vote appropriations 4

5. 2008/09 Unauthorised expenditure for the Presidency 5 Programmes 2008/09 Final appropriationActual expenditure(Over)/under spending Administration198,048212,012-13,964 Communications21,32820,522806 Executive Coordination92,35993,712-1,353 Subtotal 311,735326,246-14,511 Direct charge against the National Revenue Fund Salary of the President 2,107 - Salary of the Deputy President 1,897 - Other* 1,000 - Total 316,739331,250-14,511 Economic Classification Current Payments 277,718293,805-16,087 Compensation of employees 151,389150,583806 Goods and services 126,329143,222-16,893 Transfers and subsidies 29,44429,575-131 Payments of capital assets 9,5777,8701,707 Total 316,739331,250-14,511

6. 2008/09 Unauthorised expenditure for the Presidency The Presidency overspent its 2008/09 budget of R316.7 million by R14.5 million or 4.6 per cent. This was in respect of expenditure incurred for: −Hosting of the National Orders and Awards Ceremony −Legal fees −Travel and subsistence and related expenses incurred for the mediation in Zimbabwe −Leave gratuity payments made to former Deputy President −Hosting of the National Disability Summit; United Nations Conventions and the creation of additional Ministries in the Presidency 6

7. 2010/11 Unauthorised expenditure for the Presidency 7 Programmes 2010/11 Final appropriationActual expenditure(Over)/under spending Administration291,759312,994-21,235 Communications20,49025,870-5,380 Executive Coordination495,214497,027-1,813 Subtotal 807,463835,891-28,428 Direct charge against the National Revenue Fund Salary of the President2,3942,107 287 Salary of the Deputy President2,1561,843 313 Total 812,013839,841-27,828 Economic Classification Current Payments 393,908421,454-27,546 Compensation of employees 228,735236,302-7,567 Goods and services 165,173185,152-19,979 Transfers and subsidies 399,087399,369-282 Payments of capital assets 19,018 0 Total 812,013839,841-27,828

8. 2010/11 Unauthorised expenditure for the Presidency The Presidency overspent its 2010/11 budget of R812 million by R28.4 million or 3.5 per cent. This was in respect of expenditure incurred for: −Accruals carried forward from the 2009/10 financial year −Creation of additional Ministries for National Planning, and Performance, Monitoring and Evaluation, following the government restructuring process of 2010. −Legal fees −Travel and subsistence due to increasing international commitments by the principals in conflict resolution processes on the continent which were not planned for and fell outside of the adjustments budget process −Computer services to address additional capacity requirements emanating from new ministries as well as costs relating to the Presidential hotline −Leave gratuities obligations and municipal transfers for vehicle licenses 8

9. 2010/11 Unauthorised expenditure for the Department of Women, Children an People with Disabilities

10. Since the inception of the department, the budget for the Department of Women, Children and People with Disabilities (DWCPD) has been growing in real terms Our understanding with the department has been that it should spend within its budget, and manage its budget pressures through the budget process The department overspent its 2010/11 budget of R106.192 million by R3.728 million or 4 percent Sources of budget pressures leading to unauthorised include; –R674 000 for international travel and accommodation –R2.594 million for the celebration of National Women’s Day, and –R460 554 in telecommunications related expenses.

11. 2010/11 Unauthorised expenditure for the Department of Women, Children an People with Disabilities The Standing Committee on Public Accounts (SCOPA) has recommended that the unauthorised expenditure be financed as a direct charge against the National Revenue Fund. The DWCPD no longer exists. The additional funding recommended by the SCOPA should be allocated to the new and successor Department of Women.

12. THANK YOU 12