1. 1 PRESENTATION TO THE PORTFOLIO COMMITTEE OF MINERAL RESOURCES. STATEGIC PLAN 2014/19 DATE: 8 JULY 2014 Programme 1.1 - Financial Administration

2. Programme 1.1: Financial Administration Purpose Financial Administration is a sub-programme under programme 1: Administration. The purpose of this programme is to enable the Department of Mineral Resources to deliver on its mandate by providing strategic management and administrative support to the Ministry and the department. 2

3. Presentation Outline 1.The details on the budget that support the strategic plan of the department is outlined on pages 25 – 27 of the strategic plan:  Budget Summary 2014/2015  Expenditure estimates per programme  Expenditure estimates per economic classification 2.The Financial Administration Branch Strategic objectives and targets are outlined on pages 42-48 of the strategic plans 3

4. Overall Department Budget AUDITED OUTCOME Final Appropriation Medium-term allocation (MTEF 2014) 2009/10 R’000 2010/11 R’000 2011/12 R’000 2012/13 R’000 2013/14 R’000 2014/15 R’000 2015/16 R’000 2016/17 R’000 853 845994 6971 029 4351 173 642 1 393 8491 471 2911 599 2461 664 061 Departmental expenditure increased from R853.845 million in 2009/10 to R1.174 billion in 2012/13. The budget for the 2013/14 financial year was R1.394 billion and is expected to increase by an average growth rate of 6.7% to R1.66 billion in 2016/17. The increase is attributed to increased funding for rehabilitation of derelict and ownerless mines and the specialised technical skills required for the implementation of the National Environmental Management Act.

5. Budget per programme Programmes 2013/2014 MTEF 2014 2014/152015/162016/17 R’000 Administration 310,144 284,174 296,771 314,525 Promotion of Mine Safety and Health 153,998 167,970 177,729 188,934 Mineral Regulation 205,521 231,365 245,198 259,960 Mineral Policy and Promotion 724,186 787,782 879,548 900,642 Totals 1,393,8491,471,2911,599,2461,664,061

6. Programmes 2013/2014 MTEF 2014 2014/152015/162016/17 R’000 Administration 310,144 284,174 296,771 314,525 Programme budget for 2013/14 was R310 million and is expected to increase at an average growth of 1.5% to R314.5 million in 2016/17. The spending focus over the MTEF: Staff development initiatives, including programmes to attract skills in the mining inspectorate. ICT services and recruitment expenses

7. Programmes 2013/2014 MTEF 2014 2014/152015/162016/17 R’000 Promotion of Mine Safety and Health153,998 167,970 177,729 188,934 The budget for the 2013/14 financial is expected to increase at an average growth rate of 5.5 % to R188.9 million in 2016/17. The spending focus over the MTEF:  To ensure compliance with the Mine health and Safety Act (1996) by conducting inspections, audits, inquiries and investigations.  To further enhance the capacity to conduct inspections.

8. Programmes 2013/2014 MTEF 2014 2014/152015/162016/17 R’000 Mineral Regulation 205,521 231,365 245,198 259,960 The Programme budget for the 2013/14 financial year was R154 million and is expected to increase at an average growth rate of 9.2 % to 260 million in 2016/17. The spending focus over the MTEF:  Improving the process of issuing mining rights and permits  Increase on compensation of employees and related goods and services for the implementation of National Environmental Management Act (1998).

9. Programmes 2013/2014 MTEF 2014 2014/152015/162016/17 R’000 Mineral Policy and Promotion724,186 787,782 879,548 900,642 The Programme budget for 2013/14 was R724.2 million and is expected to increase at an average growth of 8.3 % to R900.6 million in 2016/17. The spending focus over the MTEF:  Promote the mineral sector and strengthening the regulatory framework that governs both the mining and petroleum sectors.  Assisting SMME’s to promote mineral development.

10. Budget per Economic Classification Per Economic Classification 2013/2014 MTEF 2014 2014/152015/162016/17 R’000 Compensation of employees 435,288 476,757 505,651 539,022 Goods and services 249,931 265,582 278,779 356,543 Transfer and subsidies 692,739 717,934 803,341 756,413 Capital assets 15,881 11,018 11,475 12,083 Totals 1,393,8491,471,2911,599,2461, 664,061

11. FINANCIAL ADMINISTRATION Branch Strategic Objectives and Priorities

12. Strategic objective To ensure system availability and processing of request within the required time frames Improve on financial management controls and implement the ICT governance framework. Manage budget and asset effectively and reduce irregular expenditure Reduce internal and external audit findings and implement risk management strategies and promote compliance.

13. Stakeholder Perspective : Provide efficient services to internal and external customers System availability Service Level Agreement are achieved Stakeholder Customer satisfaction Regulatory financial reports delivered on schedule Suppliers invoices paid within 30 days

14. Internal processes : Implement Improved Processes and systems Improved Financial Management Maturity Implementation of Master Systems Plan which has been developed to support the Strategic Objectives of the department through ICT.

15. Financial Perspective : Manage Financial Resources Ensuring strategic alignment of the budget Avoiding irregular expenditure Reduction of assets disposed prior to the end of its lifecycle due to theft, negligence.

16. Conclusion The department is committed to ensure effective, efficient and economic utilisation of resources. Over the past four years the Department spending remained within the budget through cost containment measures and as a result under spending was less than two per cent per year on average over the period. The oversight structures available will continuously monitor the implementation of the plans in line with the allocated budget.