1. PORTFOLIO COMMITTEE PRESENTATION ON THE 2nd 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 September The expenditure is 50% 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 September 2015
Available Budget
% Spent
R`000 %
Administration
80 451
42 582
37 869 53
Social, Political and Economic Participation and Empowerment
87 230
41 457
45 773 48
Research, Policy Coordination and Knowledge Management
6 170
1 767
4 403 29
Monitoring, Evaluation and Outreach
13 151
8 246
4 905 63
Total
94 052
92 950 50

3. DEPARTMENTAL FINANCIAL PERFORMANCE

4. FINANCIAL PERFORMANCE PER ECONOMIC CLASSIFICATION
The overall performance per economic classification depicted in the table below:
Goods & Services of R49,2 million includes ring fenced amount for office accommodation and audit fees of R14,660 million & R4, 073 million respectively. The net budget of G& S is R30, 565 million.
A virement of R3,5 million to augment spending pressures of 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 September 2015
Available Budget
% Spent
R`000 %
Compensation of Employees
66 521
31 492
35 029 47
Goods and Services
49 298
27 854
21 444 57
Transfers and Subsidies
67 689
34 256
33 433 51
Capital Payments
3 494
450
3 044 13
Total
94 052
92 950 50

5. FINANCIAL PERFORMANCE PER ECONOMIC CLASSIFICATION

6. OVERALL FINANCIAL NARRATIVE
Revenue
Revenue collection as at 30 September 2015 is R16 thousand from commission on insurance and garnishes.
Payment of Invoices within 30 days
From July to Sept 945 invoices were received, 873 were paid within 30 days and 72 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 2,057 million
HR transactions – R 196 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 1,861 million
The irregular expenditure is due to partial / non-compliance with SCM process,
Deviation pending approval of R1,4 million was included in interim for period ending September as irregular expenditure for accountability purposes.

8. PROGRAMME 1: FINANCIAL PERFORMANCE
The net budget for the Programme is R 61,718 million excluding ring fenced funds for office accommodation & Audit fees of R14,660 million and R4,073 million.
Sub-Programme
Appropriation
Actual Expenditure September 2015
Available Budget
% Spent
R`000 %
Ministry
23 923
11 536
12 387 48
Departmental Management
6 865
4 755
2 110 69
Corporate Services
21 889
17 271
4 618 79
Financial Management
13 114
4 723
8 391 36
Office Accommodation
14 660
4 297
10 363 29
Total
80 451
42 582
37 869 53

9. PROGRAMME 2: FINANCIAL PERFORMANCE
The budget of the Programme includes the budget of CGE of R 67,689 million, leaving a net budget R 19,541 million. The budget for Sub-Programmes with no expenditure will be moved to the relevant Sub-Programmes at year end. Allocation of budget was done to accommodate the new budget programme structure.
Sub-Programme
Appropriation
Actual Expenditure September 2015
Available Budget
% Spent
R`000 %
Management: Social, Political and Economic Participation and Empowerment
3 105
1 518
1 587 49
Social and Related Functions
7 436
6 092
1 344 82
Justice and Public Order
3 000 -
Governance and Administration
Economic Empowerment
Commission for Gender Equality
67 689
33 846
33 843 50
Total
87 230
41 456
45 774 48

10. PROGRAMME 3: FINANCIAL PERFORMANCE
The budget for the Programme is R 6,170 million for the year. The budget for Sub-Programmes with no expenditure will be moved to the relevant Sub-Programmes at year end. Allocation of budget was done to accommodate the new budget programme structure.
Sub-Programme
Appropriation
Actual Expenditure September 2015
Available Budget
% Spent
R`000 %
Management: Research, Policy Coordination and Knowledge Management
600
441
159 74
Research Management
3 369
1 326
2 043 39
Policy Analysis and Coordination
1 601 -
Information and Knowledge Management
Total
6 170
1 767
4 403 29

11. PROGRAMME 4: FINANCIAL PERFORMANCE
The budget for the Programme is R 13,151 million for the year. The over- spending on Sub-Programme Outreach Initiatives will be defrayed from saving s within the main division in line with the prescripts governing virement.
Sub-Programme
Appropriation
Actual Expenditure September 2015
Available Budget
% Spent
R`000 %
Management: Monitoring, Evaluation and Outreach
600 -
Monitoring and Evaluation
5 933
2 510
3 423 42
Stakeholder Coordination
3 000
1 573
1 427 52
Outreach Initiatives
3 618
4 162
-544
-15
Total
13 151
8 245
4 906 63

12. Last Page