PRESENTATION TO THE PORTFOLIO COMMITTEE ON SPORT & RECREATION

1. PRESENTATION TO THE PORTFOLIO COMMITTEE ON SPORT AND RECREATION DATE: 13 OCTOBER 2015 BY: Mr ALEC MOEMI, DIRECTOR-GENERAL PRESENTATION TO THE PORTFOLIO COMMITTEE ON SPORT & RECREATION XX /09/2014 SRSA

2. SRSA

3. BACKGROUND & MANDATE • The main responsibility of SRSA is to develop national policies and guidelines for sport and recreation in the country. Partners assisting with implementation are provinces and municipalities as well as SASCOC, National Federations, and other agencies such as NGOs. • Despite the delivery of sport and recreation in three different spheres of Government, the actions and initiatives within SRSA’s mandate were coordinated to maximise impact. • The Department administers two public entities namely; Boxing South Africa(BSA) and the South African Institute for Drug-Free Sport (SAIDS). SRSA

4. LEADERSHIP • The Department is led politically by Minister Fikile Mbalula, who is deputised by Mr Gert Oosthuizen. • Mr Alec Moemi is the administrative head of the Department (Director-General). His deputy is Ms Sumayya Khan, who holds the post of Chief Operations Officer (COO). • There are 8 Chief Directors, including the CFO, Chief of Staff and Ministerial Advisor (as well as the newly appointed CD: Communication Services), forming the next level of authority, below the COO. SRSA

5. STRATEGIC INTENT • The Vision of Sport and Recreation South Africa (SRSA) is ‘An active and winning nation’. • While this vision indicates the core focus of SRSA’s current endeavours, the scope of the vision expresses firm commitment to having a significant and positive nationwide impact. • The Mission is to transform the delivery of sport and recreation by ensuring equitable access, development and excellence at all levels of participation and to harness the socio-economic contributions that can create a better life for all South Africans. SRSA

6. PERFORMANCE OVERVIEW • During the period under review, the Department had 23 Targets. Of these targets, 21 were achieved and two were not. In addition, the Department obtained a Clean Audit Opinion on performance & financial information. • This translates to non-achievement of 9% and the Achievement of 91% of the targets. • The achievement was reached through 163 staffmembers working as members of ordinary functional units and in task teams; and R966.8 Million of the allocated R970 Million. • Although the ideal is to spend 100%, the Department's expenditure translates to only 0.3% under-spending. SRSA

7. PERFORMANCE OVERVIEW • The targets not achieved: a score of ‘4’ for Management Performance Assessment Tool (MPAT) [Programme 1] and 9 Facilities Audits (1 by each province) [Programme 5]. Only 2 audits were conducted. • MPAT: Despite its capacity constraints, the intention was to reach the maximum achievable score of ‘4’. This is because the Department could not plan to fail by allocating a score lower than a ‘4’ as its target for the year. An implementation plan has been developed to assist relevant managers’ to track performance against the set MPAT Key Performance Areas and standards. SRSA

8. PERFORMANCE OVERVIEW • The targets not achieved:… • Facilities Audit: Only 2 audits were conducted by Free State and Western Cape, while KZN only conducted an audit for one district within the province. - Although financial capacity ended up being the main reason for provinces not conducting the Audit, there seemed to be generally lack of appetite to conduct the audit. • - The indicator was carried over to 2015/16 financial year. SRSA will be leading implementation of the project. SRSA

9. CHALLENGES • The implementation of the National Sport & Recreation Plan (NSRP) is not fully funded. • This means that the Department has to prioritise the programmes it can afford. • Despite the government-wide Medium Term budget constraints, the Department is hopeful that in the near future, sport and recreation will find a spot among the other important funding pressures that are high on government priorities. SRSA

10. CHALLENGES continues • The consultation process towards finalisation of the organisational structure took longer than anticipated, thus impacting on staffing of the Department. • Although a solution, creation of posts additional to the establishment, has a limit. • Even though the structure can only be implemented in a phased approach because of funding constraints, its approval will enable the Department to plan better for the future. SRSA

11. CHALLENGES continues • Lack of capacity to effectively monitor the implementation of the Mass Participation and Sport Development Conditional Grant by SRSA and Provinces. • Terms of the Grant are updated to ensure integration of provincial programmes and those of SRSA. • The Agreement with DBE towards implementation of School Sport remains problematic. For school sport to function successfully, a sound foundation is needed; and this is where DBE operates [intra-school; inter school, and so forth]. SRSA

12. CHALLENGES continues • Lack of control over the building of sport and recreation facilities at municipal level to meet the existing needs. Discussions around the MIG are ongoing. • Although there is an improvement, governance challenges relating to Boxing South Africa (BSA) are still existing. Progress towards filling the vacancies in critical positions that are attributable to the entity’s lack of efficient and effective leadership, are in progress. • Legislation does not fully support our strategy. To this effect, the Department is reviewing its legislation: NSRA; Boxing Act [to be repealed in favour of the Combat Sport Act once finalised]; and the SAIDS Act. SRSA

13. PROGRAMME PERFORMANCE SRSA

14. PROGRAMME PERFORMANCE 5 PROGRAMMES: 1. Administration 2. Active Nation 3. Winning Nation 4. Sport Support Services 5. Infrastructure Support SRSA

15. ADMINISTRATION • Corporate Services • Two key policies under HRM were approved and implemented during the year under review. They are: Overtime Compensation Policyand theFlexible Work Practice Policy. Not having these policies had somewhat affected delivery of services after working hours. • A total of 120 employees were trained, in accredited/non-accredited training courses. • The Internal perception survey conducted revealed that overall, our staff members are motivated and are aware of the capacity challenges that only them, in the interim, can mitigate. The results help us engage labour unions from an informed position. SRSA

16. ACTIVE NATION • Against a target of 10 000, the 3rd national school sport championship held in December 2014, reached 915 more participants than the target. Of the total participants, 8 307 were learners. This can be attributed to additional categories of disabled participants having been added. • 2nd Nelson Mandela Sport and Culture Day with the official reach of 2 681 participants, saw cyclists, walkers and runners participating in physical activities as part of the broader contribution towards an Active Nation. • Hosted in partnership with the Department of Arts and Culture, the Day is part of the Unite Campaign aimed at entrenching social cohesion and nation-building. SRSA

17. ACTIVE NATION • With fewer sport codes selected as per need, to receive sport equipment and apparel, 226 (106 more schools than planned), benefitted. The Department spent more or less what could’ve been used to procure for many codes in each of the initially targeted 120 schools, in procuring equipment and apparel for 226 schools. • Once again the Department hosted the annual Andrew Mlangeni Green Jacket Awards and the Andrew Mlangeni Golf Day, as a way of contributing to golf development, while celebrating the contribution made by Mr Mlangeni to the growth of sport in the country. SRSA

18. ACTIVE NATION • Nine as opposed to the planned 2 sport promotion campaigns and events were implemented because of additional events, mainly Ministerial Outreaches to respond to added sport promotion needs. • Outreaches impact on immediate & future participation in sport and recreation [enabling tools such as equipment and apparel was made available]. SRSA

19. ACTIVE NATION • 11 318 people more than planned, especially in the events that are open to the public, such as the Big Walk, showed interest in the SRSA mass-based events. • This is because the events open to the public can take more participants without having a significant bearing on finances. For example, at a Walk, if a provision is made for 5 000 people, the additional ones may still register; but will not receive goodie bags like those who pre-registered. SRSA

20. WINNING NATION • The SasRecon – a sport and recreation conference, where academics meet with the broader sport and recreation sector to discuss matters relating to the growth of the sector, was held in Potchefstroom in 2014 as part of the knowledge management efforts of the Department. • The ThinkSport journal focusing on club development, was released in March 2015 to encourage discussions about the subject as the Department is piloting a franchise system of club development. • Five drug-free support agencies, namely: SAIDS; WADA; IADA; CDA; and RADO were supported during the period under review. SRSA

21. WINNING NATION • Following the 2014 National School Sport Championships, 18 talented athletes were chosen as recipients of Ministerial Sport Bursaries. These athletes are placed in accredited sport focus schools, and where there is no sport focus school closer to their homes, in a non-accredited school that is good in sport and academically. • The planned number of major international events receiving intra-governmental support per year was reached, while other events that will be taking place in 2015 and 2016, already received some support with among others, the facilitation of visas for organising team members to conduct site inspections, etc. SRSA

22. WINNING NATION • In partnership with the Department of Arts and Culture, we hosted another successful Ekhaya hospitality centre in Glasgow, in support of Team South Africa that participated in the Commonwealth Games in 2014. • Six athletes’/teams recognition events were held during the period under review. This was 3 more than the planned SA Sports Awards; Andrew Mlangeni Green Jackets; and 1 ‘celebrate as they win’ recognition event. SRSA

23. SPORT SUPPORT • Sport and recreation bodies receiving financial and non-financial support per year: There was improved compliance by sport and recreation bodies. This enabled the Department to allocate funds to an additional (4) sport and recreation bodies. • The 2014/2015 National Federation Transformation Progress Report was produced. The report will go a long way in helping create a transformation database for the country’s sport teams. • The Department will then be able to agree on transformation targets with each priority federation and monitor their adherence to the agreement. The financial allocations to federations will thus, be dependent on how far they meet their set transformation targets. SRSA

24. SPORT SUPPORT • The Department continued with the implementation of the agreement signed with Cuba benefiting the South African students studying Physical Education in that country. • The planned number of bilateral and multilateral engagements supported was exceeded because of the additional needs identified for such engagements. • This, mainly because at the time of planning, some of the engagements were unknown. This included for example, participation at international meetings that were only confirmed closer to them taking place. SRSA

25. SPORT SUPPORT • The Department was however able to manage with the resources at its disposal. Some of the exchanges involved representatives of other countries visiting South Africa, thus costing the Department only minimal resources. • Similarly, some of the multilateral engagements had to be supported because of South Africa’s membership of various international forums. SRSA

26. INFRASTRUCTURE SUPPORT • 25 sport & recreation facilities were assisted with technical support during construction. They include those built through support from the Sport for Change (SFC); Municipalities (using MIG); and the SRSA directly-funded community gyms. • Exceeded facilities supported: due to ‘carry overs’ caused by delays in finalising some of the projects in the 2013/2014 financial year. • 2 [FS /WC ]out of 9 provinces completed a facility audit. SRSA

27. GOVERNANCE SRSA

28. RISK MANAGEMENT / ASSESSMENT • With regard to management of risks, the Department has developed and approved the combined assurance framework which outlines the various lines of defence or available assurance providers of the Department. • A combined assurance plan has been developed, approved, monitored and reviewed on a quarterly basis through the Risk Management Committee and Audit Committee. • Risk assessments: Management has developed a risk identification and assessment methodology which aims to outline the processes of risk assessment within the Department and the rating thereof. SRSA

29. FRAUD & CORRUPTION / INTERNAL CONTROL • FRAUD AND CORRUPTION: The Department’s Fraud Prevention Plan was developed and approved. The plan forms part of Anti-Fraud and Corruption Policy. The Plan encompasses among others, Training; Supplier awareness and database; Reporting of corruption and fraud; Disclosure of gifts; and Staff vetting. • The Department is looking at capacitating this area of our governance work to ensure proper implementation of the Fraud Prevention Plan. • INTERNAL CONTROL: The Department introduced a process of internal control to provide a reasonable assurance regarding the achievement of the objectives set for the Department relating to operations, reporting and compliance. SRSA

30. MINIMISING CONFLICT OF INTEREST • MINIMISING CONFLICT OF INTEREST: In terms of the Financial Disclosure Framework all SMS members made their financial declarations. • Interview panel members: made declarations relating to their relationship with candidates. • Supply chain practitioners: signed to declare their understanding of the code of conduct (that obligates all SCM practitioners to the extent required by their position, to declare any business, commercial and financial interests or activities undertaken for financial gain that may raise possible conflict of interest). SRSA

31. GOVERNANCE • HEALTH SAFETY AND ENVIRONMENTAL ISSUES: The reviewed departmental OHS Policy and Procedures was finally adopted at the Departmental Bargaining Chamber (DBC) and is being implemented. • AUDIT COMMITTEE REPORT: We have reviewed the Department’s implementation plan for audit issues raised in the prior year and we are satisfied that the Department has put more effort in improving the internal control environment. • The Audit Committee has reviewed and accepts the opinion of the Auditor-General South Africa. SRSA

32. HUMAN RESOURCE MANAGEMENT SRSA

33. Table 3.2.1 Employment and vacancies by programme as on 31 March 2015 * Excluding two (2) Ministers and two (2) Special Advisors. SRSA

34. Table 3.2.2 Employment and vacancies by salary band as on 31 March 2015 SRSA

35. Table 3.3.1 SMS post information as on 31 March 2015 SRSA

36. Table 3.5.1 Annual turnover rates by salary band for the period 1 April 2014 to 31 March 2015 SRSA

37. Table 3.10.1 Sick leave for the period 1 January 2014 to 31 December 2014 SRSA

38. Table 3.10.3 Annual Leave for the period 1 January 2014 to 31 December 2015 SRSA

39. ANNUAL FINANCIAL STATEMENTS – 2014/2015 SRSA

40. REVENUE SRSA 40 SRSA SRSA • 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 R970 404 million for the financial year under review, which is a decrease of 9.6% translating into an amount R103 million compared to the R1 073 billion received in the previous financial year. • This significant decrease was as a result additional funding of R120 million which was a once-off special funding for the CHAN 2014.

41. REVENUE (continued) SRSA 41 SRSA SRSA • SRSA has received an additional amount of R27 million from KFW, Frankfurt am Main (German) for the rehabilitation of kick-abouts, pitches and multipurpose sites. • SRSA also generated an amount of R107 000.00 from recovery of telephone expenses from staff, interest on the bank accounts and sale of motor vehicles.

42. EXPENDITURE 42 SRSA SRSA • The Department expensed almost all funds allocated in the current financial year. • The amount to be surrendered is only R3.5 million of the R970 million appropriated from the Revenue Fund. • The funds utilized amounts to 99,63% translating into R966 million of the allocated funds. • The 3.5 million underspent was mainly in Compensation of Employees, with an amount of R1.8 million and in Goods and Services, with an amount of R1.7 million.

43. EXPENDITURE (continued 43 SRSA SRSA • The detailed breakdown of expenditure is included in the Appropriation Statement and the Notes to the Annual Financial Statements.

44. EXPENDITURE 2014/15 PER ECONOMIC CLASSIFICATION EXPENDITURE (continued) 44 44 SRSA 44 SRSA SRSA SRSA

45. EXPENDITURE (continued) 45 SRSA SRSA 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 97.8% for the year under review. • This was achieved because there was a virement of R4.029 million to goods and services effected during the year. • This was to enable the Department to defray over-expenditure for the Ekhaya Project that took place during the 2014 Commonwealth Games in Glasgow and payments towards computer software, laptops, printers and UPS for departmental servers.

46. EXPENDITURE (continued) 46 SRSA SRSA 2. Goods and services The spending on Goods and Services is 98.8% for the year under review. • The under-expenditure was due to savings realized as a result of accommodation costs that have not been utilized as the Department did not move to the new premises.

47. EXPENDITURE (continued) 47 SRSA SRSA 3. Transfers and Subsidies The spending on Transfers and Subsidies is R699 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 - R525 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 R146 million • To Boxing SA and South African Institute for Drug Free Sport - R26.5 million which is 4% of the Transfers and Subsidies budget.

48. EXPENDITURE (continued) 48 SRSA 48 SRSA 48 SRSA SRSA 4. Payments for Capital Assets The spending on Payment for Capital Assets was 97.3% for the year under review. • This represent actual expenditure of R2.109 million out of appropriated budget of R2.167 million.

49. EXPENDITURE AGAINST BUDGET 2012/13 TO 2014/15 EXPENDITURE (continued) 49 SRSA SRSA

50. EXPENDITURE 2014/15 PER PROGRAMME EXPENDITURE (continued) 50 SRSA SRSA