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

2. DEPARTMENTAL FINANCIAL PERFORMANCE
The appropriation for 2015/16 is R million with the actual expenditure of R million for the period ending December The expenditure is 76% of the total appropriation. Included in the budget allocation & actual expenditure of Programme 2 is the CGE at R million. The net budget of the department excluding CGE is R million.
Programme
Appropriation
Actual Expenditure 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
46 268 76

3. DEPARTMENTAL FINANCIAL PERFORMANCE

4. 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 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
46 268

5. FINANCIAL PERFORMANCE PER ECONOMIC CLASSIFICATION

6. 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.

7. 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.

8. 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.

9. 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 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

10. 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 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

11. 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 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

12. 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 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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