PORTFOLIO COMMITTEE PRESENTATION ON THE 3rd QUARTER 2015/16 FINANCIAL REPORT (In-Year –Monitoring / IYM) Date: 16 February 2016

DEPARTMENTAL FINANCIAL PERFORMANCE The appropriation for 2015/16 is R 189 102 million with the actual expenditure of R 142 834 million for the period ending December 2015. The expenditure is 76% of the total appropriation. Included in the budget allocation & actual expenditure of Programme 2 is the CGE at R 67 689 million. The net budget of the department excluding CGE is R121 413 million. Programme Appropriation Actual Expenditure 31 December 2015 Available Budget % Spent   R`000 % Administration 78 876 61 341 17 535 78 Social, Political and Economic Participation and Empowerment 86 931 64 666 22 265 74 Research, Policy Coordination and Knowledge Management 6 328 6 500 -172 -3 Monitoring, Evaluation and Outreach 16 967 10 327 6 640 61 Total 189 102 142 834 46 268 76

DEPARTMENTAL FINANCIAL PERFORMANCE

FINANCIAL PERFORMANCE PER ECONOMIC CLASSIFICATION The adjusted budget for CoE decreased from R66,521 million to R65,056 million due to COLA of R2,100 million received during the Adjusted Estimates of National Expenditure & a virement of R3,5 million to Goods & Services. All the transfers to CGE were done timely. The under-spending in Capital Payments is earmarked for ICT & Security projects. Economic Classification Appropriation Actual Expenditure 31 December 2015 Available Budget % Spent   R`000 % Compensation of Employees 65 056 46 594 18 462 72 Goods and Services 52 797 44 290 8 507 84 Transfers and Subsidies 67 754 51 193 16 561 76 Capital Payments 3 495 757 2 738 22 Total 189 102 142 834 46 268

FINANCIAL PERFORMANCE PER ECONOMIC CLASSIFICATION

OVERALL FINANCIAL NARRATIVE Revenue Revenue collection as at 31 December 2015 is R24 thousand from commission on insurance and garnishes. Payment of Invoices within 30 days From Oct to Dec 1028 invoices were received, 1024 were paid within 30 days and 4 invoices were paid outside of 30 days. Delays in payment of invoices outside of 30 days was mainly due to verification processes by end users. Consequence management in a form warning letters have since been issued to officials who fail to comply.

OVERALL FINANCIAL NARRATIVE Fruitless & wasteful Expenditure No fruitless and wasteful expenditure was reported for the period under review Irregular Expenditure – Total irregular expenditure for period under review is R 686 thousand HR transactions – R 291 thousand The department incurred irregular expenditure on compensation of employees for full time / permanent officials appointed at higher salary levels without the posts being evaluated at higher levels, in previous financial year/s. SCM transactions – R 392 thousand The irregular expenditure is due to partial / non-compliance with SCM process.

OVERALL FINANCIAL NARRATIVE Achievements Despite financial constraints the department has been monitoring the budget to avoid overspending. Department has drastically reduced the number of new transactions of Irregular expenditure. Improvement on payment of invoices within 30 days Challenges The Department is not adequately resourced. Budget can not meet commitments on goods and services. Department is not able to be capacitated with human resources to carry out its mandate due to inadequate funding for compensation of employees. Department is not able to implement Logis fully because of the capacity contributed by adequate lack of compensation of employees funding.

PROGRAMME 1: FINANCIAL PERFORMANCE The net budget for the Programme is R 63,716 million, the budget includes ring fenced amount of R14,660 million for Office Accommodation. Over spending of Compensation of Employees in Departmental Management & Corporate Management will be defrayed by savings from other main division Sub-Programme Appropriation Actual Expenditure 31 December 2015 Available Budget % Spent   R`000 % Ministry 24 511 15 370 9 141 63 Departmental Management 7 041 9 430 -2 389 -34 Corporate Services 21 292 21 523 -231 -1 Financial Management 11 372 7 147 4 225 Office Accommodation 14 660 7 872 6 788 54 Total 78 876 61 342 17 534 78

PROGRAMME 2: FINANCIAL PERFORMANCE The budget of the Programme includes the budget of CGE of R 67,689 million, leaving a net budget of R 19,742 million. Over spending on Social and Related Functions of 60% is due to Promotional items, which will be defrayed by savings from other main division. The budget for Sub-Programmes with no expenditure will be moved to the relevant Sub-Programmes at year end. Sub-Programme Appropriation Actual Expenditure 31 December 2015 Available Budget % Spent   R`000 % Management: Social, Political and Economic Participation and Empowerment 3 105 2 464 641 79 Social and Related Functions 7 044 11 296 -4 252 -60 Justice and Public Order 3 031 - Governance and Administration 137 2 894 5 Economic Empowerment Commission for Gender Equality 67 689 50 769 16 920 75 Total 86 931 64 666 22 265 74

PROGRAMME 3: FINANCIAL PERFORMANCE The budget for the Programme is R 6,328 million for the year. Over spending on of this Programme is due to penalty fees that were paid for cancellation of Pakisa Fleet contract and catering for 16 days of Activisim, that was allocated against the vote whilst waiting the GBS Funding to transfer the funding for 16 Days . The budget for Sub-Programmes with no expenditure will be moved to the relevant Sub-Programmes at year end. Sub-Programme Appropriation Actual Expenditure 31 December 2015 Available Budget % Spent   R`000 % Management: Research, Policy Coordination and Knowledge Management 619 3 608 -2 989 -83 Research Management 3 463 2 500 963 72 Policy Analysis and Coordination 1 628 - Information and Knowledge Management 618 392 226 63 Total 6 328 6 500 -172 -3

PROGRAMME 4: FINANCIAL PERFORMANCE The budget for the Programme is R 16,967 million for the year. Sub-Programme Outreach Initiative has an over spending on goods and services due to Promotional Items for 16 days of Activism, that was allocated against the vote whilst waiting the GBS Funding to transfer the funding for 16 Days. The expenditure will be moved to GBS funding. Sub-Programme Appropriation Actual Expenditure 31 December 2015 Available Budget % Spent   R`000 % Management: Monitoring, Evaluation and Outreach 618 336 282 54 Monitoring and Evaluation 6 104 2 682 3 422 44 Stakeholder Coordination 5 037 1 188 3 849 24 Outreach Initiatives 5 208 6 121 -913 -18 Total 16 967 10 327 6 640 61

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