BSA Briefing Portfolio Committee DATE: 18 April 2012 Venue: Cape Town, Committee Room 2
BOXING SOUTH AFRICA Mandate as per Boxing Act 11 of 2001: • To provide for a new structure for professional boxing in the Republic; • To ensure the effective and efficient administration of professional boxing in the Republic; • To recognise amateur boxing; • To create synergy between professional and amateur boxing; • To establish a Boxing Commission known as Boxing SA; • To promote interaction between associations of boxers, managers, promoters, trainers and officials and Boxing SA; and to provide for matters connected therewith
BSA HISTORY • No permanent CFO since 2005, last CFO was Lerato Mokoena • Acting CEO 2009-2011. • Ineffective Audit committee - audit finding 2010/2011 • Little or no proper internal audit function – audit finding • Lack of sufficient financial resources obtained from government to at least fund legislative requirements – R2.3million • Lack of sponsorships • Decrease in income generating revenue ie. sanctioning fees & licence fees • Lack of internal controls • Inefficient Strategic Plan - audit finding • BSA does not have resources to fund strategic objectives
BSA FINANCIAL HISTORY Accumulated deficit as at 31 March 2011 = R6 248 040
BSA FINANCIAL HISTORY • Other legislative costs are not funded by the government grant. • Such costs include but no limited to Internal & External audit fees, Board Fees, • Rental, Marketing Costs, Travel and accommodation costs related to Board & • Committee meetings.
SRSA grant (R2 307 000) Sponsorship (R0) REVENUE 2011/2012 Sanctioning Fees - 30/09/2011 (R400 000) License Fees – 30/09/2011 (R260 000) Other provincial grants (R0) Forfeit fees – 30/09/2011 (R4000)
SARS (R8 604 497) AGSA (R755 162) CREDITORS 31 March 2011 Board Fees (R324 960) Audit Committee Fees (R36 304) Trade payables (R878 051)
BSA CREDITORS Major creditors & balances:
BOXING SA ORGANISATIONAL STRUCTURE MINISTER OF SPORT AND RECREATION SA HON. MR. FIKILE MBALULA DEPUTY MINISTER OF SPORT AN RECREATION HON. GERT OOSTHUIZEN BSA BOARD CEO MOFFAT QITHI PA to CEO (VACANT) CFO (OUTSOURCED: Financial Management Consultant) DIRECTOR OF OPERATIONS LOYISO MTYA (ACTING CEO) DIRECTOR: COMMUNICATIONS & MARKETING (VACANT) FINANCIAL MANAGER TUMELO KEKANA HR MANAGER (VACANT) BOXING TECHNICAL CO-ORDINATOR NOMSA MDHLULI IT & STATISTICS OFFICER SKHUMBUZO MOTHA TOURNAMENTS & OFFICE ASSISTANT ABRAM KAMBULE PROVINCIAL MANAGERS ACCOUNTS ADMINSTRATOR VERQUELENE JACOBS RECEPTIONIST LILLIAN DE WEE GENERAL ADMINISTRATIVE ASSISTANT MAJORIE THEBE ACCOUNTS CLERK (VACANT)
BSA Turnaround Strategy • Appointment of permanent CEO – June 2011 • Appointment of new Board – August 2011 – the new board consists of independent members from different lines of duties and with prior experience in BSA. • Financial management consultant has been appointed to carry out the duties of the CFO mainly oversight over the finance management of the entity since January 2011. • Appointment of a permanent CFO by July 2012 • Necessary Board sub committees have been established • Appointment of new Audit committee by June 2012. • Development of new Draft Strategic plan and Annual performance plan by the new Board.
BSA Turnaround Strategy • BSA has developed an Action Plan 2011/2012 based on audit findings and risk assessments thereto. The Action plan has been integrated into departmental operational plans. Financial management consultant monitors progress monthly which is then aligned to quarterly reporting. • New and revised policies have been approved to address control risks and monitoring of implementation is performed monthly. • Relocation of BSA Offices – to a more marketable and approachable location
FUNDING FOR BSA TURNAROUND STRATEGY • Insufficient funding available for implementation of the turnaround strategy • What is BSA doing to obtain more funding? • Request for SRSA to increase the annual grant to at least meet legislative requirements • Board and CEO have begun applications to various organisations for sponsorships • Analysing methods of increasing sanctioning fees and license fees.
THE END. THANK YOU!