1 srsa – for the active you annual report 2011/2012 presented to the portfolio committee on sport...

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SRSA – FOR THE ACTIVE YOU

ANNUAL REPORT 2011/2012

PRESENTED TO THE

PORTFOLIO COMMITTEE ON SPORT & RECREATION

17 October 2012

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• The main responsibility of SRSA is to develop national policies and guidelines for sport and recreation in the country. The key implementers are provinces and municipalities as well as SASCOC and the National Federations.

• Despite the delivery of sport and recreation in three spheres of Government, the actions and initiatives within SRSA’s mandate were integrated and coordinated for maximum impact.

• The Department administers two public entities namely; Boxing South Africa, that was established in terms of the South African Boxing Act, 2001 (Act No. 11 of 2001), and

• The South African Institute for Drug-Free Sport, that was established in terms of the South African Institute for Drug-Free Sport Act, 1997 (Act No. 14 of 1997) as amended.

Introduction - Leadership

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• The Department is led politically by Minister Fikile Mbalula assisted by his Deputy, Mr Gert Oosthuizen.

• Administratively, the Department had two Directors-General during the period under review; namely: Ms Sumayya Khan (in acting capacity) and Mr Alec Moemi.

• Mr Moemi started work as Director-General of SRSA on 1 November 2011. On assuming office, he liaised with staff at all levels, re-engineered Departmental systems and developed new and innovative programmes and processes.

Introduction - Leadership

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Vision & Mission

• The Vision of Sport and Recreation South Africa is to create 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 achieving 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.

Strategic Intent

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• The Department has an establishment consisting of 210 funded posts including the two political office bearers.

• The Department filled 174 posts, with 36 vacancies.

• The Department also employed 2 Special Advisors to the Minister, three contract employees, as well as 18 interns during 2011/2012.

• There were 18 terminations during the period under review, i.e. 5 resignations, 1 dismissal and 12 transfers to other Government Departments.

Personnel

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• The Department undertook its business with the allocated budget of R820,880,000.

• In January 2011, the Ministry introduced a Road-Map to High Performance and Functional Excellence to guide the interim delivery of sport & recreation in South Africa.

• Following the Road-Map, the Department convened the National Sport and Recreation Indaba in Midrand from 21 - 22 November 2011, and produced the National Sport and Recreation Plan (NSRP) – a first for South Africa.

• A draft functional structure was reviewed in the 2011/12 financial year, following the new strategic direction documented in the National Sport and Recreation Plan.

Accounting Officer’s Overview

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• SRSA launched the School Sport Programme in November 2011, as the bedrock for sports development in our country. The roll-out of the Programme took place at the ‘Kick-Off’ event at Vlakfontein High School, Mamelodi, in March 2012.

• The athlete support for school sport concept document was finalised with inputs from the DBE and SASCOC. The document aims to propose an athlete support system for school sport athletes in order to ensure a systemic approach to the support of primary school and high school athletes. The aim is to optimise the performance of those who have talent.

• Together with the Department of Basic Education we have started to implement sport and recreation in the 11 000 registered schools, whilst at the same time making compulsory physical education work for all the learners.


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• To support our intentions to accelerate school sport provision in South Africa, SRSA and SASCOC developed and adopted a new Coaching Framework for the country. Through this Coaching Framework, educators will be trained as coaches to assist grassroots sport development as well as our elite sport to achieve the set goals.

• SRSA reviewed its support strategy for research and consequently, the method of delivering SASRECON. Emphasis will henceforth be placed on Masters and PHD student research. Academics from different national and international academic institutions will also be commissioned to present papers at SASRECON in support of the students. Letters were sent to the heads of sport of all tertiary institutions to inform them about the change.


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• The Golden Games were successfully hosted in the Free State from 20 - 21 October 2011.

• The National Indigenous Games took place from 23 - 25 March 2012 at the Tshwane Events Centre. Eight of the nine Provinces participated in all the codes. The Games also provided recreational activities for young children and families.

• SRSA launched the National Sports Volunteer Corps (NSVC) programme on 13 February 2012 in Kempton Park. Sports legends, former athletes and players have shown enthusiasm and interest and have pledged their support for this programme.


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• The terms of reference and Memorandum of Understanding between SRSA and the National Youth Development Agency for the hosting of the first Youth Camp, were finalised. The intention of the Camps is to inculcate a sense of leadership, social cohesion, team and nation building. This project will take place in the 2012/13 financial year.

• ‘Magnificent Fridays’ Campaign was launched and rolled out to various provinces. It was intended to galvanise the entire nation to stand behind their sport heroes and heroines and help them to achieve their best in the respective international sport tournaments scheduled for 2011 whilst at the same time building unity and cohesion.


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• The 2010 FIFA World Cup Country Report was finalised. The report is a collation of evidence gathered from commissioned an empirical research, the reports of stakeholders and their findings. It also provides the country with socio-economic benefits generated from hosting the 2010 FIFA World Cup.

• As far as sport and recreation facilities are concerned, 163 municipalities were lobbied to build facilities, whilst 58 sites (properties) were inspected for structural and technical suitability.

• In 2011, we hosted a successful South African Sports Awards at Sun City in the North West Province. The 2011 edition was a revamped and renewed event to award excellence and success towards our athletes and sportspersons.


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• On the international front, the Department hosted a successful 123rd International Olympic Committee Session from 7 to 12 July 2011 in Durban. The highlight of the Conference was the announcement of the host for the 2018 Olympic Winter Games.

• Following the success of the first phase of Youth Development Through Football (YDF), the German government extended its support by another 18 months making a further contribution of Euro 1,6 million. The second phase will build on the achievements gained during the initial phase, specifically, focusing on consolidation and sustainable integration into the national structures and programmes.


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• We have played a significant role in supporting our neighbouring country, Mozambique to host a successful 10th All-Africa Games in September 2011. We provided technical support in respect of athletics, boxing, canoeing, cycling, chess and specialized transport for athletes with disabilities.

• On conflict resolution in Africa, SRSA contributed immensely to the Post Conflict Reconstruction and Development especially in Burundi. In August 2011, we concluded a Bilateral Agreement with the Government of Burundi which led to South Africa’s successful conveyance of sport equipment donation to Burundi.

• We further hosted a study tour delegation from the Uganda National Sport Council which was aimed at assisting the people of Uganda to revitalize their national sport policy.


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• SRSA continues its support to the 9 SA students in Cuba. These students were selected from disadvantaged communities around the country to study towards their University Degrees in Physical Education at the prestigious university in Cuba.

• Through our participation in the activities of the World Anti-Doping Agency, we are transmitting a message that supports the use of sport and recreation to fight drug use in the sport and recreation sector. Minister Mbalula was elected as a member of the executive committee of WADA.

• Successfully held talks with the National Basketball Association on the development of basketball in South Africa and secured the broadcasting rights from the SABC.


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• SRSA organised celebratory events for Banyana Banyana and the women’s hockey team for their qualification of the 2012 London Olympics.

These events include: - Road shows to Mamelodi on the 19 and Soweto on 20 March

2012.

- A formal Gala Dinner was also organised for the two teams. The guests included the Ghana national female soccer team.

- An international friendly game was played by Banyana Banyana against Ghana on 21 March 2012 at the Dobsonville Stadium in Soweto.


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• Support was provided to continental sports bodies such as the African Union, Supreme Council for Sport in Africa and Zone VI.

• The Department also facilitated various exchange programmes and intra-governmental support for international events.

• Ekhaya project was successfully hosted in:

- Maputo from 30 August to 20 September 2011 during the all Africa Games and

- New Zealand from 3 September to 9 October 2011 during the 2011 Rugby World Cup.


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• The Ministerial Outreach Programme was held in various areas of the country in an effort to increase access and consequently participation in sport and recreation.

- Botshabelo - Sports equipment was donated to an HIV and Aids orphanage and hospice organisations to encourage those infected to play sport and live a healthy life.

- Opening of facilities: Westonaria (artificial pitch); Soweto (artificial golf-pitch); Pretoria (swimming pool at Willowridge High School); Nelson Mandela Bay (Rugby Academy)

- School sport activities: Mamelodi (School Sport League Kick-Off); University of Johannesburg, Soweto (launch of the School Sport Programme).

- Peddie, Eastern Cape - Enhanced the quality of teaching and learning through sport and inculcated a culture of sport amongst learners


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• SRSA continued to be a very active participant in the Technical Implementation Forum constituted out of delivery partners to ensure the delivery of Outcome 12(b) - “An empowered, fair and inclusive citizenship”.

• The Director-General attended and initiated important stakeholder engagements with entities such as: Government Cluster meetings Colleagues of national departments Provincial Heads of Departments SASCOC National Federations CATHSSETA Business leaders


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Since his appointment, the DG has initiated 35 DepartmentalTask Teams in the last 5 months of the financial year underreview. The Task Teams had among others, the followingpositive outcomes:

• Re-engineering of business processes in implementing a turnaround strategy for SRSA.

• Greater synergy in the work of the Department and a decrease of units working in silos.

• Provision of officials with an opportunity to build their own capacity and to, in many cases, unearth their latent potential.

• New initiatives and great results in the delivery of various projects.

• Breaking down of stigmas and unqualified perceptions.• Building team spirit within the Department.


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Funding

• SRSA provided SASCOC with R26million for the preparation of the teams that participated in the 2012 Olympics. Additional amounts were allocated for team preparation to the SA Hockey Association (women’s team); the Paralympics team and Swimming South Africa.

• The ring-fencing of the 15% of the Municipal Infrastructure Grant (MIG) towards building sport facilities in rural areas was an important step to address the shortage of sport infrastructure in municipalities.


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CHALLENGES

&

RECOMMENDATIONS

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Challenges

•Following the strategic review by SRSA’s management in August 2011, the following key weaknesses and threats were identified:

Weaknesses- Organizational structure not supporting strategy- Lack of a learnership and national youth service programme- Lack of accredited skills development programmes for staff within the Department and unemployed youth- Weak control environment- Lack of common philosophy of work

Threats- Uncontrolled bidding to host international events- Change in political landscape changing strategic direction- Global economic crisis having a knock-on effect on our budget- Ineffective performance management system- Proliferation of unregulated sports bodies

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Other challenges include:

• The general lack of coordination and cohesion in delivering recreation.

• The addressing of sports transformation throughout the development continuum in a holistic way.

• School sport remains critical for sports development, but effective delivery has been hampered by challenges in institutional relationships. The playing fields must be leveled to afford all schools a fair chance to participate in the school sports programme. There is still an absence of facilities in most rural schools and communities.

• Uneven spread of competition opportunities, as most private entities prefer to host competitions in the affluent and resourced schools.

Challenges

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• The shortage of suitable sporting equipment and kit. In some cases, when schools did get equipment, it was of inferior quality, despite the exorbitant prices charged by service providers.

• The absence of skilled personnel such as umpires, technical officials, professional coaches, and scientific support practitioners in most rural areas.

• Activities related to club development have been fragmented, resulting in the duplication of activities and reduced impact and significance of interventions.

• The capacity to effectively monitor the implementation of the Mass Participation Programme and the Conditional Grant remains a major challenge.

Challenges

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• The National Sport and Recreation Plan should address most of the challenges, and when funding is made available, SRSA will consider partnering with other companies to drive the policy.

• The Transformation Scorecard will assist with the monitoring of progress with regards to transforming the SA sport system.

• Over the medium term, the department will develop a single governance model for recreation to strengthen the delivery of recreation programmes. In addition, the current mass participation programmes will be expanded to include the promotion and implementation of recreation programmes.

Recommendations

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• The department will continue to focus on empowering educators in code specific coaching, technical officiating, team management and sports administration. It will also focus on integrating 16 sporting codes and indigenous games into the school sport system over the medium term. The school sports programme will include an interschool, district and provincial school sport league programme, and will culminate in the national top schools games and the South African Youth Olympic Games.

• A new agreement with loveLife will provide explicit linkages between the programmes of the organisation and those of NFs and school sports events. In terms of this, coaches will be better equipped to empower the youth by receiving training in HIV and AIDS awareness and life skills.

Recommendations

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• In collaboration with national federations, initiatives to support and strengthen existing clubs will be brought together under the Sport Support Services programme to maximise the impact of these interventions.

• Ensuring value-adding terms of the Conditional Grant.

• Strengthening the monitoring of the Grant in the provinces.

• The development of the norms and standards regarding the specifications of what sports equipment and consumables can be purchased and distributed.

Recommendations

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• The ring-fencing of 15% of the Municipal Infrastructure Grant for building sports facilities in rural areas, is an important step to address the shortage of sports infrastructure in municipalities.

• The new sport and recreation plan has necessitated the review of the Departmental structure that will enable implementation of the SRSA strategy. Discussions with relevant stakeholders should be intensified in the next financial year.

Recommendations

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OVERVIEW OF

PERFORMANCE INFORMATION

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SRSA work is divided into five programmes:

•Programme 1: Administration

•Programme 2: Sport Support Services

•Programme 3: Mass Participation

•Programme 4: International Liaison and Events

•Programme 5: Facilities Coordination

Programme Performance

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• The following graph indicates the performance of the line functions departmental programme against set annual performance plan targets.

• In total 36 targets were sets to be achieved by line function. 25 targets were reported as achieved, 5 targets were reported as partially achieved and 6 targets as not achieved.

SRSA Performance Overview

Programmes Performance

5

6 6

8

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0 0

3

1 1 1

01

23

45

67

89

Programme 2 Programme 3 Programme 4 Programme 5

To

tal n

um

ber

of

targ

ets

Achieved

Partially Achieved

Not Achieved

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PROGRAMME 1

ADMINISTRATION

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SUB-PROGRAMME: INTERNAL AUDIT

• SRSA Internal Audit Charter; Audit Committee Charter; and the Risk Management Committee Charter were reviewed and approved.

• SRSA Risk Register 2010/11 is in place.

• 3-year Internal Audit Strategic Plan 2011-2014 and Operational Plan (for year ending 31/3/2012) approved by Audit Committee.

• Risk Assessment Report & Internal Audit regulatory report completed and presented to the Audit Committee and the Risk Management Committee.

• 4 Quarterly reports were submitted to the Audit Committee.

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SUB-PROGRAMME:

STRATEGIC & EXECUTIVE SUPPORT

• Facilitated the finalisation of the NSRP (National Sport and Recreation Plan).

• Updated the White Paper on sport & recreation.

• Strategic Plan 2012-2016 was approved and tabled.

• 2012/2013 Annual Performance Plan was approved and tabled.

• 2010/11 Annual Report was approved and tabled.

• Monitoring and Development Framework developed to guide on monitoring of strategic plan and improvement of service delivery.

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SUB-PROGRAMME: CORPORATE SERVICES

Auxiliary services

• The following 4 services were maintained namely:- Property services (accommodation);- Office support;- Logistics- Security services.

Information Technology

• Stable IT environment management developed, implemented and updated. Decision on the preferred IT system for SRSA to be taken by management in the 2012/13 financial year.

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Labour Relations

• Misconduct & disciplinary hearings finalised addressed the following types of misconduct:

Absenteeism (1); Irregular Supply Chain & Procurement processes (2); Misrepresentation (1); Unauthorised use of state property (1); Fraud & Corruption (1).

• The outcomes of the disciplinary hearings were as follows:

- Written warnings – 1- Final written warnings – 1- Suspended without pay – 1- Dismissal - 1- Cases withdrawn – 2

• Disputes: The two disputes lodged were dismissed.

• Precautionary suspensions: Three people were suspended.

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Human Resources

• The following are reasons why staff are leaving the Department:

- 5 resignations- 1 dismissal (misconduct)- 12 transfers to other Public Service Departments (4

were senior managers).

- SRSA gained two senior managers including the Director-General.

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Human Resources Cont…

• Gender: Females account for 28% of the filled senior management level positions. SRSA need to appoint 7 females to meet the set 50/50 employment equity target.

• Disability: The Department met the 2% target in terms of people with disabilities. Two of the 4 officials are at Senior and Middle management level.

• Race: Out of 174 filled posts, Africans - 82% (144); Coloured - 4% (7); Indian - 2% (3); White - 11% (20).

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Communication & Information

• SRSA Communication Strategy was approved and adopted at HEADCOM.

• A total of 89 (against the yearly target of 10) marketing and communication events/projects were implemented to promote SRSA.

- The variance was caused by projects that were not included in the target as SRSA has no control over them. They include National Federation events. The number of briefing sessions towards the National Sport & Recreation Plan/Indaba as well as the Magnificent Friday Campaign activations were more than anticipated.

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Legal Services

• Four reports were generated detailing the status of applicable Bills, Acts and Regulations in sport and recreation.

• Four contract status reports, four legal advice reports and four intellectual property registers were produced.

• Consolidated reports documenting labour relations matters were produced.

• Twelve reports on Service Level Agreements were signed and managed.

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SUB-PROGRAMME: CFO’S OFFICE

• All 12 IYM (in-year monitoring) reports, 12 DoRA reports and 3 AFS (Annual Financial Statement) reports were submitted to the National Treasury.

• ENE (Estimates of National Expenditure) and AENE (Adjusted Estimates of National Expenditure) chapters and databases were submitted in line with National Treasury prescripts.

• Less than10% was non-compliance with SCM procurement policy.

• The turn-around time on orders finalised was 14 days. Of the total service providers appointed by SRSA, 70% represented BEE companies.

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PROGRAMME 2

SPORT SUPPORT SERVICES

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SUB-PROGRAMME:

SPORT & RECREATION SERVICE PROVIDERS

• 4 against the target of 61 NFs received financial support. The reason for variance was that some NFs grants were cut because they didn’t meet deadlines and requirements for funding.

• 29 against the target of 43 projects were monitored and evaluated. Team members could not monitor events on weekends due to a resolution taken by labour unions. SRSA is set to review policies to accommodate compensation for overtime worked.

• 1 against the target of 1 sports recognition event was hosted.

• 189 against the target of 189 capacity building training to clubs was provided. Equipment was provided to 41 clubs.

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SUB-PROGRAMME: EDUCATION AND TRAINING

• The generic training manuals were updated and approved by CATHSSETA. The purpose of the manuals is to train sport facilitators.

• A total of 130 (against target of 200) learners were trained (NQF L4 & L5). The variance was caused by the National Federations that did not submit names.

• 50 of the targeted 500 learners with a disability were trained. The cause of the variance was the problems experienced with the procurement of service providers. The training will be delivered in 2012/13.

• None of the targeted 104 recreation coordinators were trained because the Municipalities did not submit names of participants.

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SUB-PROGRAMME: EDUCATION AND TRAINING

• 77 coaches of the targeted 70 were trained in basic sport science and medicine education. On request from the provinces, an additional 7 coaches were accommodated within the available budget upon.

• 100% success was achieved with regards to compliance with WADA stipulations in regard to government responsibility towards anti-doping.

• 1 461 against the target of 1 800 sub-elite athletes received support from SRSA. In line with the NSRP, the DG placed a moratorium on any support for SSTID athletes; therefore scheduled testing camps were cancelled and not supported.

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PROGRAMME 3

MASS PARTICIPATION

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SUB-PROGRAMME: COMMUNITY SPORT

• 16 against the targeted 12 provincial monitoring reports were produced. The target was exceeded due to the additional hubs that were within proximity of the selected hubs.

• 1 351 of the targeted 1 316 people were appointed (Conditional Grant).

• 100% success was achieved with regards to the following: - Number of hubs converted into self-sustainable entities; - Number of 2010 legacy projects implemented per year; - Number of festivals and tournaments held.

• 28 008 against the reviewed target of 28 000 participants in sports promotion projects were managed by SRSA.

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SUB-PROGRAMME: COMMUNITY SPORT & SCHOOL SPORT

Community Sport:

•9 104 (This number includes the school sport figure of 4 333) of the targeted 18 000 people were trained. The school sport target was not achieved due to the process of finalising the SA coaching framework, the development of LTPD materials and the selection and training of facilitators.

•2 013 of the targeted 4 652 hubs, schools and clubs received equipment (CG). Some schools did not receive equipment due to the re-alignment of the school sport strategy.

School Sport:

•Training of school sport coaches and technical officials was done as part of the Conditional Grant training.

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PROGRAMME 4

INTERNATIONAL LIAISON AND EVENTS

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SUB-PROGRAMME: INTERNATIONAL LIAISON

100% of the intended targets were achieved in the following:

• Participation in identified multilateral (continental & international) organisations (IBSA, BRICS, AU/SCSA, UN)

• Requests met for facilitating the provision of work permits, visas and passports and managing sport donations from the international community timeously

• International exchange programmes executed to enrich sport development, particularly skills in coaching, officiating, administration and sport science

• Drafting of the International Relations policy guidelines for the sports sector.

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SUB-PROGRAMME: INTERNATIONAL LIAISON

• The indicator regarding the management of ODA programmes (target 1) was reviewed within the Department. In its place, meetings and workshops were attended at National Treasury.

• Two Programmes of Action against the targeted 5, were implemented following the signing of bilateral agreements with identified strategic countries in Africa and abroad.

Major events• 19 major international events received intra-governmental

support per year against the targeted 15 because South Africa agreed to host on short notice, the events that were not in the original plan.

• There was 100% achievement against the plan to use national

& international sporting events, exhibitions or conferences, to showcase SA as a sports tourist destination.

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PROGRAMME 5

FACILITIES COORDINATION

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SUB-PROGRAMME: PLANNING & ADVOCACY

• A total of 163 against the targeted 100 municipalities were lobbied to build sport and recreation facilities.

• 4 reports against the targeted 4 on facilities provision were produced.

• A database was developed and updated following provincial facility audits as planned.

• A total of 15 against the target of 15 Youth Development against Violence through Sport (YDVS) facility projects were implemented.

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SUB-PROGRAMME: TECHNICAL

• Because of the higher demand for turf grass training, 88 against the target of 75 managers trained.

• 100% of requests against the targeted 80% for assistance with technical support were received and processed.

• 4 of the targeted 4 technical inspection reports on implementation of the norms and standards for sport and recreation infrastructure (A total of 58 sites were inspected for structural and technical suitability).

• 2 of the targeted 2 stadia management reports produced documenting the sustainability and maintenance of national sport venues.

• None of the community sport and recreation gymnasiums were equipped. The project was discontinued because of reprioritization.

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FINANCIAL STATEMENTS

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Challenges:• Housekeeping issues raised by the Auditor General that

still need management attention.• Rate of staff turnover in finance and supply chain unit.• The vacancies of finance and supply chain Directors.

Achievements:• Unqualified opinion from AG for three consecutive years.• No emphasis of matters reported by the AG on financial

statements.• Reduction in number of issues raised by the AG.

Financial Performance

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EXPENDITURE AGAINST BUDGET 2009/10 TO 2011/12EXPENDITURE AGAINST BUDGET 2009/10 TO 2011/12

Budget and Expenditure Trend

Financial year BudgetR’000

ExpenditureR’000

Percent

2009/10 2 883 908 2 866 430 99.4%

2010/11 1 255 489 1 252 026 99.7%

2011/12 820 880 810 622 98.8%

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EXPENDITURE 2011/12 PER PROGRAMMEEXPENDITURE 2011/12 PER PROGRAMME


Per ProgrammeFinal

AppropriationActual

ExpenditureVariance

Expenditure as a % of Final

Appropriation

R'000 R'000 R'000 %

Administration102,817 101,815 1,002 99.0%

Sport SupportServices 179,506 178,125 1,381 99.2%

Mass Participation486,434 479,023 7,411 98.5%

InternationalLiaison and Events 47,811 47,662 149 99.7%

Facilities Coordination4,312 3,997 315 92.7%

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EXPENDITURE 2011/12 PER ECONOMIC CLASSIFICATIONEXPENDITURE 2011/12 PER ECONOMIC CLASSIFICATION


DEPARTMENT OF SPORT & RECREATION SA

Final Appropriation

Actual Expenditure

Variance

Expenditure as a %

of final

Appropriation

BUDGET R'000 R'000 R'000 %

Compensation of employees 73,814 73,119 695 99.1%

Goods and services 126,937 120,527 6,410 95.0%

Total current payments 200,751 193,646 7,105 96.5%

Transfers and subsidies to:

Provinces 451,968 451,969 (1) 100.0%

Departmental agencies and accounts 21,780 21,789 (9) 100.0%

Foreign gov & intern organisations 16,661 16,661 - 100.0%

Non-profit institutions 127,678 125,265 2,413 98.1%

Households - 114 (114)

Total Transfers and Subsidies 618,087 615,798 2,289 99.6%

Payments for capital assets

Heritage assets

Machinery and equipment 1,808 954 854 52.8%

Software and other intangible assets 234 218 16 93.2%

Total payments for capital assets 2,042 1,172 870 57.4%

Payment for financial assets - 6 (6)

Total 820,880 810,622 10,258 98.8%

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Transfer Payments Name of institution Amount transferred

R’000Estimate expenditure

R’000

MPP DoRA Grant 451,968 451,969

Boxing SA 10,112 10,112

SA Institute for Drug-Free Sport 11,604 11,604

Foreign government & international organisations

16,661 16,661

loveLife 30,415 30,415

National Federations 97,263 94,850

BOXING SA: Continued to experience problems with governance. Other issues that remain a challenge are the allocation of funds to BSA, the lack of sponsorship and its capacity to fulfill its statutory mandate effectively.SAIDS: Bi-quarterly reports were received as well as the annual report and audited financial statements.LoveLife: R30.4 million was transferred for the promotion of HIV and AIDS awareness through sport.National Federations: SRSA transferred R84.9 million to 52 NFs and monitored the use of these funds in line with service level agreements. R2.9 million was transferred to Federations to host National School Competitions and R7.1 million was transferred to SASCOC for Sport Tourism.FIFA: R16.7 million was transferred to FIFA for 2010 FIFA World Cup VAT tickets refund.

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MASS PARTICIPATION PROVINCIAL ALLOCATIONS

Province

2011/2012Division of

Revenue Act

RollOvers

ActualTransfer

Amountreceived

bydepartment

Amount spent byprovince

% of available funds

spent bydepartment

2010/2011RevisedDivision

ofRevenue

Act

2010/2011Amount

spent byprovince

R’000 R’000 R’000 R'000 R'000 % R’000 R’000

Eastern Cape 63,570 1,400 63,570 63,570 59,659 94% 75,838 70,431

Free State 33,078 - 33,078 33,078 32,839 99% 28,291 28,393

Gauteng 71,148 4,049 71,148 71,148 73,857 104% 67,664 62,436

Kwa-Zulu Natal 87,694 - 87,694 87,694 87,694 100% 93,714 93,714

Limpopo 53,636 2,095 53,636 53,636 47,781 89% 47,955 44,550

Mpumalanga 38,382 - 38,382 38,382 38,341 100% 31,663 31,663

Northern Cape 26,372 - 26,372 26,372 26,720 101% 23,927 21,113

North West 35,124 6,499 35,124 35,124 37,954 108% 37,593 23,642

Western Cape 42,964 - 42,964 42,964 42,867 100% 40,593 40,446

451,968 14,043 451,968 451,968 447,712 447,177 416,388

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• Administration under spending was mainly due to non procurement of office furniture and equipment.

• Sport Support Services – under spending was due to transfer payments that were not transferred as planned as a result of Federations that failed to comply with the funding framework.

• Mass Participation under spending was due to postponement of Youth camps, and events like Indigenous Games Festival that took place in March but invoices sent in April 2012.

2011/12 Under-spending and Reasons

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“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 2012 and its financial performance and cash flows for the year then ended in accordance with the Departmental Financial Reporting Framework prescribed by the National Treasury and the requirements of the PFMA and DoRA.”

AUDIT OPINION

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Irregular Expenditure

Incident Number

Quotations not obtained 204

Transactions (financial delegations)

58

Non-compliance (no tax clearance certificates)

35

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Fruitless and wasteful expenditure - Prior Years

Incident Fin.Year

Disciplinary steps taken/criminal proceedings

Amount

Double hotel booking – Schools Projected handed over without full commitments already made

2009/10 An employee was charged but the charges were later withdrawn on lack of evidence. Investigation re-opened.

2,120

Payment made for the venue that was not utilised – Workshop cancelled.

2009/10 Matter is under still investigation56

Cancellation of booked venue 2008/09 Matter is under investigation 265

Ekhaya center Beijing Olympics Games

2008/09 Two employees implicated in the matter were transferred to Correctional Services. The Department has transferred the matter to Correctional services for disciplinary action.

4,274

Payment to Supplier for service not rendered

2008/09 An employee was charged but was found not guilty. Summons have been re-issued to the service provider

440

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RESPONSES ON THE REPORT

OF THE AUDITOR-GENERAL

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Auditor-General findings for 2011/12 financial year

AGSA identified some internal control deficiencies during the financial year under review particularly on the following:

1. Performance Information

2. Financial and Supply Chain Management

3. Human resources Management

4. Policies and Procedures

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AGSA Report: Action Plan to address deficiencies

1. Performance information

Management will:• Lock the QSRM reporting template to prevent unauthorised

changes on the set targets.• Ensure that there is a consistence reporting and alignment

between QSRM reports and the Annual Report.• Conduct workshop with provinces to align the MPP

indicators and to ensure the same interpretation of indicators and measurements across all provinces.

• Ensure that evidence and/or supporting documents for indicators achieved are kept on file for audit purposes.

• Furthermore, performance information management will be incorporated in the Performance Agreements of all SMS members in the 2012/13 financial year.

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2. Financial and Supply Chain Management

Management will ensure that:• Invoices are date stamped on receipt and that correct the

receipt date is captured in the system when processing payments for those invoices. Where late payments are caused by long pending verifications of banking details of service providers by National Treasury, evidence of such delays will be kept for record purposes.

• Evidence of all quotations requested and received are attached on the payment batch for that particular transaction. Tax clearance certificate required before processing of orders. Copy invoices certified before processing payments. All deviations from supply chain procedures must be recorded and approved as required by the policies.

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2. Financial and Supply Chain Management Cont……

• All supporting documents must be attached to all claims, and payment requisitions before authorizing payments.

• Conduct physical asset verification and identified redundant assets to be removed from the register.

• Record all movements of assets in the prescribed forms

and update the asset register accordingly.


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3. Human resources Management

• Leave management incorporated in the Performance Agreements of all SMS members to manage it in their specific units. Reports of non-compliance to be submitted to top management.

• Issue a circular on declaration of interest forms to all staff for completion and return to SCM & HRM. Procedures are in place to recruit competent staff to fill key positions.


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4. Policies and Procedures

• Approval of all internal departmental policies was delegated by the EA to the Director-General.

• Procedures are in place to recruit competent staff to fill key positions until the process of organisational review is completed.

• Fast tracking of the process of organisational review.

• Management to amend the Disaster Recovery Plan. • Management will document the monitoring of

passwords, user logon violations and user access to applications.


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AGSA Report

Conclusion

• Management has developed detailed action plans to address all issues raised by the AGSA.

• The implementation of these action plans is regularly monitored and evaluated by the Audit Steering Committee.

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THANK YOU

1 srsa – for the active you annual report 2011/2012 presented to the portfolio committee on sport...

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