1. PRESENTATION TO THE PORTFOLIO COMMITTEE ON SPORT & RECREATION
FINANCIAL STATEMENTS
Date: 11 October 2015
For the Active You! 1

2. SLOT 5:
for the year ended 31 March 2016

3. REVENUE
SRSA is amongst the non-revenue generating government departments.
The revenue for the Department is mainly made up of the annual appropriation received from the National Revenue Fund.
SRSA was appropriated an amount of R million for the financial year under review.
SRSA also generated an amount of R406 thousand from: interest from bank account, recovery of telephone & parking expenses, and other staff debts. 3

4. EXPENDITURE
The Department expensed almost all funds allocated in the current financial year.
The amount to be surrendered is only R977 thousand of the R980 million appropriated from the Revenue Fund.
The funds utilized amounts to 99,9% translating into R979 million of the allocated funds.
The R977 thousand underspent was mainly in Compensation of Employees, with an amount of R521 million and R303 thousand in Transfers payments (Households) and Goods and Services. 4

5. EXPENDITURE (CONTINUED)
The detailed breakdown of expenditure is included in the Appropriation Statement and the Notes to the Annual Financial Statements. 5

6. EXPENDITURE (CONTINUED)
DEPARTMENT OF SPORT & RECREATION SA
Final Appropriation
Actual Expenditure
Variance
Expenditure as a %
of final
Appropriation
R'000 %
Current Expenditure
Compensation of employees
94 305
93 784
521
99.4%
Goods and services
2 310
98.6%
Transfers and Subsidies
Provinces & Municiaplities -
100%
Departmental agencies and accounts
30 363
30 344 19
99.9%
Non-profit institutions
Households
2 026
(2 026)
Payments for capital assets
Machinery and equipment
2 167
2 014
153
92.9% 6

7. EXPENDITURE (CONTINUED)
Expenditure is therefore broken down as follows in terms of Appropriation per Economic Classification:
1. Compensation of Employees
The spending on compensation to employees is 99.4% for the year under review.
This was achieved because there was a virement of
R4.5 million to goods and services effected during the year.
This was to enable the Department to defray
over-expenditure on departmental projects. 7

8. EXPENDITURE (CONTINUED)
2. Goods and services
The spending on Goods and Services is 98.6% for the year under review.
The under-expenditure was due to bursary payments of non–employees budgeted under goods and services but expensed under Transfers and Subsidies. 8

9. EXPENDITURE (CONTINUED)
3. Transfers and Subsidies
The spending on Transfers and Subsidies is R718 million which represent 100% of the appropriated amount, this simply means that SRSA did not under-spend on this budget item. Transfers and Subsidies was therefore broken as follows:
To Provinces - R533 million which represent 75% of the Transfers and Subsidies budget
To Non-Profit Institutions (Clubs and Federation) - 21% of the Transfers and Subsidies budget, which translates into R153 million
To Boxing SA and South African Institute for Drug Free Sport – R30.3 million which is 4% of the Transfers and Subsidies budget. 9

10. EXPENDITURE (CONTINUED)
4. Payments for Capital Assets
The spending on Payment for Capital Assets was 92.9% for the year under review.
This represent actual expenditure of R2.014 million out of appropriated budget of R2.167 million. 10

11. EXPENDITURE AGAINST BUDGET 2013/14 TO 2015/16
EXPENDITURE (CONTINUED)
EXPENDITURE AGAINST BUDGET 2013/14 TO 2015/16
Financial year
Budget
R’000
Expenditure
Percent
2013/14
99.9%
2014/15
99.6%
2015/16 11

12. EXPENDITURE 2015/16 PER PROGRAMME
EXPENDITURE (CONTINUED)
EXPENDITURE 2015/16 PER PROGRAMME
Per Programme
Final Appropriation
Actual Expenditure
Variance
Expenditure as a % of Final Appropriation
R'000 %
Administration 59
99.9%
Active Nation 37
100%
Winning Nation
57 152
56 510
642
98.9%
Sport Support 89
Infrastructure Support
2 996
2 846
150
95.0% 12

13. TRANSFER PAYMENTS Name of institution Final Appropriation R’000
Amount Transferred
Provincial Conditional Grant
Boxing SA
10 468
SA Institute for Drug-Free Sport
19 816
CATHSSETA 79 60
National Federations 13

14. MASS PARTICIPATION PROVINCIAL ALLOCATIONS
Province
2015/16
Division of Revenue Act
Roll Overs
Adjustments/Budget Cut
Actual
Transfer
% of funds spent by department
R’000
R'000 %
Eastern Cape
61 066 -
(503)
60 563
100%
Free State
64 526
(128)
64 398
Gauteng
89 864
(330)
89 534
Kwa-Zulu Natal
89 191
1 435
(495)
88 696
Limpopo
63 459
(1 861)
61 598
Mpumalanga
44 039
1 027
(699)
43 340
Northern Cape
29 181
North West
40 752
6 186
(21)
40 731
Western Cape
55 216 32
(32)
55 184
8 680
(4 069) 14

15. FINANCIAL MANAGEMENT Challenges:
There are still some gaps in the departmental Internal Control Systems, even though a lot of improvement has been experienced.
Achievements :
Maintenance of a clean audit
Reduction of AG Findings
Improvement on payment of suppliers within 30 days. 15

16. FINANCIAL PERFORMANCE
Achievements:
Unqualified opinion from AG for three (3) consecutive years
No emphasis of matters reported by the AG on performance information
Reduction in number of issues raised by the AG. 16

17. FINANCIAL PERFORMANCE (CONTINUED)
AUDITOR-GENERAL’S REPORT:
I have evaluated the reported performance information against the overall criteria of usefulness and reliability.
I evaluated the usefulness of the reported performance information to determine whether it was presented in accordance with the National Treasury’s annual reporting principles and whether the reported performance was consistent with the planned programmes.
I further performed tests to determine whether indicators and targets were well defined, verifiable, specific, measurable, time bound and relevant, as required by the National Treasury’s Framework for managing programme performance information (FMPPI). 17

18. FINANCIAL PERFORMANCE (CONTINUED)
AUDITOR-GENERAL’S REPORT:
I assessed the reliability of the reported performance information to determine whether it was valid, accurate and complete.
I did not identify any material findings on the usefulness and reliability of the reported performance information for the following programmes: Active Nation, Winning Nation and Sport Infrastructure Support.
Opinion
In my opinion, the financial statements present fairly, in all material respects, the financial position of the Department of Sport and Recreation South Africa as at 31 March 2016 and its financial performance and cash flows for the year then ended, in accordance with the Modified Cash Standards as prescribed by National Treasury and the requirements of the PFMA and DoRA. 18

19. WE CAN CONTINUE TO MAINTAIN THE DEPARTMENTAL CLEAN AUDIT.
NOTES
WORKING TOGETHER,
WE CAN CONTINUE TO MAINTAIN THE DEPARTMENTAL CLEAN AUDIT.
We will now take questions and advice from the Honourable Members.
Thank You.
Mr Alec Moemi
ACCOUNTING OFFICER 19