1. CGE Report to PC for Women in the Presidency for the 1 st financial quarter of 2015/16 period Financial management 1

2. Purpose of the presentation In accordance with provisions of the Constitution of South Africa, Act 108 of 1996 (chapter 13), The Public Finance Management Act of 1999 (as amended) – The Commission seeks to report to Parliament its financial affairs and activities for the financial year to 30 June 2015 And account for spending of the funds appropriated by parliament in terms of the Appropriation Act of 2015 as well as report on other financial management responsibilities provided for in terms of related prescripts 2

3. Contents Financial performance for period to 30 June 2015 – Budget overview – Analysis of income and expenditure Financial Position as at 30 June 2015 – Liquidity and solvency – Going concern implications Other Financial Management matters – Risk management – Supply Chain management – Corporate Services – Audit and internal control systems 3

4. 4 Subprograms annual budget – 2015/2016 Commissioners’ R10m Main/Core Service Delivery R43m Corporate Services R17.1m Strategic Objective 1 – R8.6m Strategic Objective 2 – R20.7m Strategic Objective 3 – R14.4m Strategic Objective 4 – R26m Approved Budget =R67.7m Final Budget = R69.7m Adjustment budget – not transferred from fiscus – R2m (retained from accumulated surplus) Strategic Objective 1 – R8.6m Strategic Objective 2 – R20.7m Strategic Objective 3 – R14.4m Strategic Objective 4 – R26m Approved Budget =R67.7m Final Budget = R69.7m Adjustment budget – not transferred from fiscus – R2m (retained from accumulated surplus)

5. Core activities costing – approved budget SO Travel & Accomodation Catering and Venues Report writing, editing and layouts Printing Radio Slots Consulting services Total direct APP expenses SO1 680 000 100 000 200 000 430 000 1 410 000 SO2 1 561 000 1 988 500 40 000 700 000 4 289 500 SO3 1 180 000 70 000 100 000 450 000 150 000 1 950 000 SO4 100 000 200 000 1 730 000 2 030 000 Grand Total 3 521 000 2 158 500 300 000 1 120 000 700 000 1 880 000 9 679 500 5 Strategic objective Total Direct- Goods & Services allocated costs (Overhead expenditure) Salaries (COE)Grand total % contributi on SO 1 1 410 000 1 846 925 5 310 156 8 567 08112% SO 2 4 289 500 4 239 778 12 190 082 20 719 36030% SO 3 1 950 000 3 204 957 9 214 683 14 369 64021% SO 4 2 030 000 3 982 140 20 019 779 26 031 91937% 9 679 500 13 273 800 46 734 700 69 688 000100% % contribution 14%19%67%100% Total budget Direct APP goods & Services

6. 6 Medium term allocations – 2015/16 Budget figures per line item ClsTotal Bank Charges 46 800 Compensation of Employees 46 734 700 Computer Servicing, Internet & Website 531 780 Courier Services 161 300 Depreciation & Amortisation 2 281 600 Employee Assistance Program 130 000 Media Outreach 700 000 Office Cleaning, Maintenance, Plants & Security 1 036 310 Office Consumables 132 400 Printing & Stationery 377 200 Professional Services 4 805 400 Report writing,Printing & Publishing 1 120 000 Subscriptions 235 400 Telecommunication Expenses 1 594 800 Training and Development 800 000 Travel, Accommodation and Related Expenditure 5 766 200 Vehicle expenses, maint, fuel and other 1 075 310 Venues, Catering & Event Management 2 158 800 Grand Total 69 688 000 Adjusted for conditional grant allocation B -2 000 000 B grant income will set off the depreciation charge on vehicles and IT equipment purchased during the year Allocation from National Treasury 67 688 000 6

7. Distribution of allocation Salaries make up two thirds of allocation – R46.7 m 57% (R26,.7 m) of COE attributable to core service delivery –SO1 to SO3 Operating overheads at 19% of full budget 7

8. Income and Expenses – Q1 Results Statement of Financial Performance for the quarter ended 30 June 2015 2 015 2014 R R Revenue Revenue from non-exchange transactions 16 923 000 16 809 000 Other income 166 412 1 374 376 Total revenue 17 089 412 18 183 376 Expenses Operating expenses 4 019 451 5 910 929 Personnel Costs 12 344 530 11 150 763 Other administrative expenses 211 917 211 300 Finance costs - 9 Depreciation and amortisation expense 242 952 71 864 Total expenses 16 818 850 17 344 865 Surplus for the year 270 562 838 511 8

9. Income Transfers of R16, 9 million in 2015 compared to R16, 8 million in 2014. Because of budget reduction effected by NT in 2014, there is no effective upward adjustment to baseline Interest income (R154k compared to R179k in 2014). Due to reducing cash balances in the bank Discretionary grant ex- SETA R12k in the first Quarter. Arose from compliance with SDA and related regulations Total Income was therefore R17, 1 million in 2015 (Q1) compared to R18, 2 million in 2014 (Q1). Gender summit donations accounted for the difference in the main 9

10. Expenditure over view Total expenditure was R16, 8 m in 2015 v R17, 3 m in 2014. Discounting for the Gender summit effect, the 7% salary increase accounts for the movement/change between the two periods; by and large Spending pressures imminent and is being curtailed as a matter of survival. COE turns in the upper of 70% (Q1 at 75% of spending), eroding planning/control space Apart from noted COE induced pressures, there was a general lag in spending for activities linked to the core programme viz. Travel and venues, event management respectively at 10% and 3% of quarterly spending 10

11. Analysis of expenditure – Q1/2015 Total spending Table 1 Economic Classification Budget figures Prior Period Q1 Current Period actuals Q1 as% of Annual budget Compensation of Employees 46 714 500 11 150 958 12 562 16527% Depreciation & Amortisation 2 281 600 71 864 242 95211% Goods & Services 20 691 900 6 122 043 4 013 73219% Grand Total 69 688 000 17 344 865 16 818 85024% COE %67%64%75% Notes COE spend at 75% of total. Salary increases at 7% for staff to level 12. A provision was made for a 6% increase for SMS and Commissioners – a conservative estimate. The risk of budget structure (COE intensive should be noted Overall spending is within the norm ( 3/12 months = 25%) 11

12. Expenditure analysis – Q1 Notes Table 4 ProgrammeEconomic Classification Annual Budget figures Actuals Prior Period Q1 Actuals Current Period Q1 % Actuals to Annual Budget COMMISSIONERS: GOVERNANCE & SUPPORT Compensation of Employees 8 384 100 2 013 820 2 265 74527% Goods & Services 1 777 300 2 028 489 358 02820% COMMISSIONERS: GOVERNANCE & SUPPORT Total 10 161 400 4 042 309 2 623 77326% CORPORATE SUPPORT SERVICES Compensation of Employees 9 311 500 2 391 579 2 625 04828% Depreciation & Amortisation 2 281 600 71 864 242 95211% Goods & Services 7 495 326 2 441 904 2 623 57335% CORPORATE SUPPORT SERVICES Total 19 088 426 4 905 348 5 491 57429% SERVICE DELIVERY PROGRAM Compensation of Employees 29 018 900 6 745 558 7 671 37226% Goods & Services 11 419 274 1 651 650 1 032 1319% SERVICE DELIVERY PROGRAM Total 40 438 174 8 397 208 8 703 50322% Grand Total 69 688 000 17 344 865 16 818 85024% Relative contributions COMMISSIONERS: GOVERNANCE & SUPPORT Total 15%23%16% CORPORATE SUPPORT SERVICES Total 27%28%33% SERVICE DELIVERY PROGRAM Total 58%48%52% Core service delivery programme accounts for 52% of total for Q1 COE dominant at an average of 27% of the annual budget – a 2% runaway rate 12

13. Expenditure analysis – Q1/2015 Table 2 Cls Actula - Prior Period Q1 Annual Budget figures Actual - Current Period Q1 as % of Annual Budget Bank Charges 14 340 40 000 17 14843% Compensation of Employees 11 150 958 46 491 500 12 344 61027% Computer Servicing, Internet & Website 34 086 531 780 61 97412% Courier Services 30 346 161 460 97 96061% Depreciation & Amortisation 71 864 2 281 600 242 95211% Interest Paid on Bank overdraft 9 -0% Media Outreach 250 412 700 000 20 5493% Office Cleaning, Maintenance, Plants & Security 310 269 1 036 430 291 09028% Office Consumables 46 369 132 300 49 59637% Printing & Stationery 337 394 377 300 116 87631% Professional Services 1 677 656 5 735 570 1 675 84229% Report writing,Printing & Publishing 69 231 1 140 000 36 4723% Subscriptions 1 487 235 400 233 56699% Telecommunication Expenses 669 213 1 594 850 692 63243% Training and Development 35 901 - -0% Travel, Accomodation and Related Expenditure 1 184 445 5 946 200 615 29410% Vehicle expenses, maint, fuel and other 217 415 1 075 310 266 34625% Venues, Catering & Event Management 1 243 472 2 208 300 55 9423% Grand Total 17 344 865 69 688 000 16 818 85024% 13

14. Notes Table 3 Department Annual Budget figures Current Period actuals Q1 as % of Annual Budget relative to total spending ALL 2 281 600 242 95211%1% CAPEX0% CHIEF EXECUTIVE OFFICER 3 714 450 909 65324%5% COMMISSIONERS 10 161 400 2 623 77326%16% COMMUNICATIONS 2 995 400 668 17122%4% EASTERN CAPE 2 729 610 619 44023%4% FINANCE & ADMINISTRATION 7 805 750 2 723 90035%16% FREE STATE 2 614 630 476 20318%3% GAUTENG 2 889 120 633 52022%4% HUMAN RESOURCES 2 744 846 710 85926%4% INFORMATION TECHNOLOGY 2 541 780 904 21036%5% KWAZULU NATAL 2 646 810 627 82824%4% LEGAL 4 377 000 691 45016%4% LIMPOPO 2 004 420 558 90728%3% MPUMALANGA 2 715 164 489 52718%3% NORTH WEST 2 478 250 601 28624%4% NORTHERN CAPE 2 537 600 613 30924%4% Parliamentary Unit 2 516 1000% PUBLIC EDUCATION & INFORMATION 1 608 950 447 83928%3% RESEARCH 4 957 570 1 240 59825%7% WESTERN CAPE 3 069 350 949 60131%6% COO Office 298 200 85 82329%1% Grand Total 69 688 000 16 818 85024%100% Provincial offices spent at 4% of the total each, averaging R610 k per province per quarter Finance at 35% of total annual budget and 16% of spending for Q1 – mainly due to audit fees (R1,1 m in Q1) IT department ‘s main driver of increased spending is the professional services for the ICT infrastructure project at R205k for the quarter 14 Q1 spending analysis by office

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16. Financial Position Solvency ratio at the end of June in 2014 was 139% compared to the current level of 143%. The cushion is mainly represented by net assets of R5, 1 million being surplus funds accumulated from the previous years liquidity as represented by the current ratio is moving into un-favourable levels. As at 30 June 2015, current ratio was 98% (cash ratio was 97%) compared to 1: 1. 3 in the previous year. Non-current assets increased by investment in fleet (R4 in the latter part of 2014/15). ICT equipment CAPEX will be disbursed in Q2 of 2015/2016 pending final SCM delivery Liabilities are made of R6,6 million (payroll & staff), Conditional grant of R3, 7 m and R1, 4 m for exchange/suppliers payables. The investment would move assets from cash to PPE (long term). Current spending pressure + decline in liquidity = Risk[CF &GC ] 16

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18. Risk management Risk Status as at 30 June 2015 - Summary from the Risk register Risk Associated Strategic ObjectiveCategoryCount of Risk Average of IR Average of RR All 1 12 9 Strategic 1,2 and 3 Research PEI Legal1 16 8 Strategic 2 Sub strategic 1PEI1 16 Strategic 2 Sub strategic 4PEI1 8 6 Strategic 2 Sub strategic 5Communications3 18 16 Communications/PEI1 25 16 Strategic 4Finance - SCM2 18 8 Finance, IT1 15 8 HR (Payroll)1 16 9 Strategic 4 Sub strategic 5Communications1 16 12 Strategic objective 2Legal2 21 15 Research1 16 12 Strategic objective 3Research1 16 12 Strategic objective 4Finance6 21 9 HR3 20 16 Strategic objective 4, Sub strategic 3IT5 20 14 Grand Total31 19 12 18

19. Risk management Associated Strategic Objective Commun ications Commun ications/ PEI FinanceHRITLegalPEIGrand Total Strategic 2 Sub strategic 1 16 Strategic 2 Sub strategic 5 25 16 21 Strategic objective 2 20 Strategic objective 4 16 25 21 Strategic objective 4, Sub strategic 3 16 Grand Total 25 16 25 16 20 16 18 19 High Risk areas Funding and spending pressures Physical security especially on perils related to items of IT and vehicles. Controls and Risk transfer will mitigate - insurance IT network efficacy & performance until the project is complete Electricity supply - BCP Accommodation leases Massaging/content – reports and dissemination/communications Compliance and internal controls Case management system for complaints - effectiveness

20. Supply chain management High value procurement transactions (Acquisition management) – Desktops (73) and laptops (32). Bids received and evaluated. Estimated cost (combined R1, 3 m) – Accounting System improvements – winning bid was for R374, 130 – Travel and conferencing (2014 spend was R8 million). Tender was issued on 28 June 2015. The existing contract expires on 31 December 2015. Performance Management – Defective performance by a service provider for the supply of servers. Payments (R771, 000) withheld. Remedial action effected for a full performance by 28 July 2015. Logistics Management – Fleet management : fuel use and running costs within acceptable norm therefore no indications of misuse. Office Accommodation – New interventions from national treasury for mass renewal of leases. Exceptions are PTA office, Head Office, Free State office and Eastern cape office 20

21. Year end and Audit updates The regularity audit by AGSA concluded and audit report considered by the Audit Committee on 28 July 2015. Outcomes reportable with Annual report (prohibition by PFMA) AR on AoPO (Audit of Performance Outcome) and AFS to be tabled in Parliament by the latest 30 September2015 as is required by the PFMA The Commission continues to implement Action Plans agreed to from all previous audits. 21

22. 22 Thank You HAVE A GENDER RELATED COMPLAINT ???? REPORT IT TO 0800 007 709 Twitter Handle @CGEinfo Facebook: Gender Commission of South Africa