SRSA ANNUAL REPORT 2007-08PRESENTATION

TO THE SPORT AND RECREATION PORTFOLIO COMMITTEE

21 – 22 October 2008

PROGRAMME 1: SP: OFFICE OF THE CFO

Finance

• Audit steering committee was established.

• Financial statement was prepared and submitted to National treasury.

• Basis of qualification was reduced from 9 in the 2006/07 to 3 in the 2007/08.

SP: OFFICE OF THE CFO

Supply Chain Management

• All departmental officials signed the code of conduct for supply chain practitioners as required. No incidents of fraud or corruption were recorded within the Supply Chain Management Unit during the financial year under review. However, incidents of non-compliance have occurred, especially when urgent procurements were required.

• To address the issue, several workshops were conducted to raise awareness on the procurement process within SRSA. The filling of critical vacancies within Supply Chain Management Unit will be address as a high priority in the new financial year.

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SP: OFFICE OF THE CFO

Supply Chain Management

• The Asset Management Unit was established in 2007. All the old and the newly acquired assets are in the process of being captured on the asset register to indicate the financial values. The Asset Register complies with the minimum requirements and an asset management policy was approved.

BUDGET AND EXPENDITURE TREND

Financial year

Budget

R’000

Expenditure

R’000

%

2005/06 457 788 435 718 95.2

2006/07 959 946 886 548 92.4

2007/08 5 067 207 5 048 000 99.6

BUDGET AND EXPENDITURE TREND

Per Programme Final

Appropriation

Actual

Expendi ture

Variance Variance as a %

of Final

Appropriation

R’000 R’000 R’000 %

Administration 82,589 82,540 49 0%

Client Support Services 94,083 84,992 9,091 10%

Mass Participation 250,966 248,677 2,289 1%

International Liaison & Events

12,191 11,931 260 2%

Facilities Co -ordination 5,378 3,819 1,559 29%

2010 FIFA World Cup 4,622,000 4,615, 884 6,116 0%

BUDGET AND EXPENDITURE TREND

Per Economic classification Final Appropriation

Actual Expenditure

Variance Variance as a % of FinalAppropriation

R’000 R’000 R’000 %

Current payment:

Compensation of employees 46,079 43,425 2,654 6% Goods and services 150,975 142,020 8,955 6%

Interest and rent on land Financial transactions in assets and liabilities 157 (157) 0% Transfers and subsidies:

Provinces and municipalities 4,799,004 4,799,002 2 0%

Departmental agencies and accounts 18,151 10,520 7,631 42% Universities and Technikons

Public corporations and private enterprises 120 13 7 (17) -14 %

Foreign gover nments and international organisations

Non -profit institutions 24,818 24,748 70 0% Households 25,000 25,049 (49) 0%

Payments for capital assets:

Buildings and other fixed structures 92 (92) Machinery and equipment 3,060 2,781 279 9% Heritage assets Biological or cultivated assets

Software and other intangible assets 69 (69) 0% Land and subsoil assets

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2007/08 UNDERSPENDING AND REASONS

• Under spending was due to transfer payment for Tourism, Hospitality and Sport SETA which was not transferred in full because of disagreements on the Memorandum of Understanding. (Ownership of Copyrights)

• Projects which were not rolled out as planned due to shortage of personnel caused this programme to under spend. (Norms and Standard project was not rolled out as planned)

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AUDIT OPINION

In my opinion, except for the effects of such adjustments, if any, as might have been determined to be necessary had I been able to satisfy myself as to the matters described in the Basis for qualified opinion paragraphs the financial statements present fairly, in all material respects, the financial performance and cash flows for the year then ended, in accordance with the modified cash basis of accounting determined by the National Treasury, as set out in accounting policy note 1.1 and in the manner required by the PFMA and DoRA.

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AUDIT REPORT – BASIS OF QUALIFICATION

Tangible and intangible assets

1. Assets acquired post April 2002 disclosed at R1

Action Plan The SCM Unit has updated the asset register and the exercise was

completed at the end August 2008. These assets from the Sport Commission and the audited Asset Register from the Commission was used to update the new SRSA register

2. Adjustments to Opening and Closing BalancesAction Plan The Department is in a process of appointing service provider to assist with the reconciliation of the opening balance that dates back from 2004/05 financial year.

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AUDIT REPORT – BASIS OF QUALIFICATION

Goods and Services

3. Athletes PaymentsDepartment has an agreement with a service provider to whom the

funds are paid, the department has to audit the payment made, but at the time of the AG audit, that internal audit was not yet performed, as such we could not provide AG with relevant documents because they are kept by service provider.

Action PlanDepartment is in a process of implementing the system of paying

athletes directly and all supporting documents and evidence will be available to certify that all stipends are paid to correct recipients'.

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AUDIT REPORT – BASIS OF QUALIFICATION

Receivables For Departmental Revenue

4. RoyaltiesInformation supporting transactions was not submitted by

the International Marketing Group (IMG) to support validity of transactions. This has changed and all transactions will be supported.

Action PlanThe legal service unit is compiling a procedure to collect

directly from users instead of using a third party. The transactions will also be certified by the Independent Auditors of the relevant federation

EMPHASIS OF MATTERUNAUTHORISED EXPENDITURE

Incident Disciplinary steps taken/criminal proceedings

Amount

8% performance bonuses paid to

staff during 2006/07 financial year Investigation completed and waiting for the report.

1 067 000

Transitional allowances paid during the 2006.07 financial year

Investigation completed and waiting for the report.

1 864 000

Payment of unused leave Responsible officials to pay back 150 000

Additional transfer paid to BSA Requested Treasury to condone and still waiting

2 000 000

Contribution paid to Women’s Golf World Cup

Requested Treasury to condone and still waiting

1 000 000

Promotional Items purchased for SDASA conference

Disciplinary actions to be taken against responsible officials

675 000

Total 6 756 000

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EMPHASIS OF MATTERUNAUTHORISED EXPENDITURE

• For the financial year in review the following investigations were performed and officials were charged with misconduct and others are still to be charged.

• A material amount of irregular and fruitless and wasteful expenditure pertaining to training contracts is currently under investigation.

• Irregular expenditure of an unknown amount, relating to a sport event, was incurred. This investigation is still in progress.

• The Department investigated the loss of equipment amounting to R475,201.16. This matter is still under investigation.

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EMPHASIS OF MATTERUNAUTHORISED EXPENDITURE

• Possible fruitless and wasteful expenditure amounting to R202,762.40, relating to accommodation expenses, is currently under investigation.

• An amount of R1,425,000.00 was paid into a fraudulent bank account for a statutory body. The full amount was recovered and the matter is currently under investigation by SAPS. Furthermore, the Department is also investigating financial misconduct and fraud against officials.

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SP: OFFICE OF THE DG

• Establishment of management structures ( TMT, MANCO and QSRM)

• Forged good relations with stakeholders, monthly meetings

- SASCOC- BSA- SAIDS, etc

• Expedition of departmental spending • Addressed some of the audit queries (systems and

policies)• Working relations with provinces

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SP: CORPORATE SERVICES

• Provide infrastructure and office support• Create sound labour relations between employees and

employer.• Manage and develop the human resources of SRSA• Provide legal advice, coordinate litigation and draft

regulations and legislation. • Provide support to the line function in terms of

advertising, exhibitions, publications, branding, media liaison, research and information.

• Provide Information Technology and ICT support services.

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SP: CORPORATE SERVICES

AUXILIARY SERVICES:

• Relocation to Tshwane inner city brought huge new challenges with regard to crime prevention, accessibility, traffic control, etc.

• Challenges with regard to accommodation and other infrastructure-related issues due to expanded establishment as well as ad-hoc projects like Zone VI games.

• Shortcomings in building hampering effective accommodation of people with disabilities are being addressed.

• The financial year served as benchmark for budgeting for rates and taxes related expenditure.

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SP: CORPORATE SERVICES

LABOUR RELATIONS:

• 75% of staff were trained on grievance procedures in the Public Service.

• The GPSSBC ruled in favour of SRSA in a dispute filed at the GPSSBC by an employee.

• 7 placement related grievances were received, of which 2 cases has been finalized and the rest are still outstanding.

• One official was suspended for a total of 188 days.

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SP: CORPORATE SERVICESHUMAN RESOURCES

• SRSA has met the Employment Equity targets established by DPSA.

• SRSA provided 225 training opportunities.• SRSA awarded 32 bursaries during 2007/ 08.• Of the 228 approved posts on the establishment, 37 were vacant as

at 31 March 2008.• 25 jobs were evaluated and 14 of these jobs (56%) were upgraded.• As a result of advertisements placed during the year a total of 26

employees were promoted.• 85 new employees were appointed.• 12 employees left the service of SRSA.• A total of 666 days sick leave were taken at an estimated monetary

value of R 588 000.

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SP: CORPORATE SERVICES

HUMAN RESOURCES

• A total of 2 354 days annual leave were taken at an average of 12 per employee.

• 2 written warnings and 2 final written warnings were issued to staff.• 1 staff member was suspended and 1was dismissed.• A total of 17 grievances were lodged and 7 of these have been

resolved.• A total of 10 disputes were lodged with different councils with

jurisdiction and 7 of these were dismissed.• A total of 21 employee working days were lost due to strike actions

and R 34 000 was recovered from employees due to the no work no pay principal.

• 2 injuries, requiring basic medical attention, occurred on duty.

SP: CORPORATE SERVICES

LEGAL SERVICES:

• The Sport and Recreation Amendment Act was promulgated in November 2007.

• An Intellectual Property register was compiled.

• Issues of royalties for the use of the King Protea was pursued with Cricket SA and the SA Rugby Union.

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SP: CORPORATE SERVICES

COMMUNICATION & INFORMATION:

• Communication & Information support to Ministry and departmental programmes & events/projects i.t.o Advertorials; Media liaison; and Exhibitions and branding at national and international events.

• Production of SRSA publications such as the 2006/ 07 Annual Report and the quarterly Your Sport magazine.

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SP: CORPORATE SERVICES

Information Technology• Provide Information Technology and ICT support services.• An information technology audit was done to establish the state of

the information security environment within the Department. • Several weaknesses that could impact on the integrity and

availability of information at SRSA were identified such as the non- existence of a security policy, a disaster recovery plan and disaster recovery site.

• Certain logical access security weaknesses on the Novell Netware login server were also noted.

• The audit also found that the Department had no specific backup procedures with regards to the day-to-day backup process and there was no evidence with regards to the periodic restoration of backups, including the offsite backup.

• Short term and long term plans have been implemented to address the above issues.

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SP: STRATEGIC & EXECUTIVE SUPPORT

• Process to update White Paper and develop National Sports Plan commenced.

• 2008-2012 SRSA Strategic Plan updated.• 2008/09 Business Plans developed.• Quarterly Status Review Meetings used as

a key forum for monitoring & evaluation of performance information.

• SRSA Policy Register developed & updated

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SP: STRATEGIC & EXECUTIVE SUPPORT

• “A Case for Sport” framework finalized.

• External fora list compiled.

• M&E undertaken for MPP in 5 provinces.

• Public Service Commission survey coordinated.

• Service Delivery Improvement Plans completed for 5 programmes.

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PROGRAMME PERFORMANCE

PROGRAMME 2:

SPORT SUPPORT SERVICES

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SP: SPORT & RECREATION SERVICE PROVIDERS

• Through grants to sport and recreation service providers of R20,3m, 2 520 athletes and 30 teams were supported over and above commitments to transformation and administration

• Facilitated the once off payment of R3m to selected school sport codes

• Funded and coordinated the support to the All Africa Games team and Olympic squad through an allocation of R16m for 378 athletes and 97 coaches and team officials through training camps, residential programme and sports science and medical support

• Established a sports science directorate which prepared for the implementation of the National Academy Programme via a de-centralised model

• Developed a Mini-Drug Master Plan with the assistance of SAIDS and the Central Drug Agency

• Funding reviewed in conjunction with other departments for loveLife

• Support provided to the Sports Trust

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SP: CLUB DEVELOPMENT PROGRAMME

• 366 new clubs established across all provinces

• Apparel and equipment issued to clubs to assist in their establishment

• 356 team managers trained

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SP: EDUCATION & TRAINING

• 3 500 people trained in coaching, administration, team management, event management

• 450 volunteers for the FIFA 2010 World Cup Preliminary Draw trained in conjunction with the LOC and THETA

• Signed a joint implementation plan with SAQA to fast track the registration of various learning programmes and qualifications

Qualification in volunteer services 8 unit standards and 8 learning programmes in beginner coaching for rugby,

football, athletics, volleyball, netball and cricket to enable particularly educators to be trained as coaches

• Hosted a national education and training conference attended by 158 delegates

• Established a national quality forum for sport and recreation education and training

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SP: INTERNATIONAL LIAISON

• Facilitated conclusion of bilateral agreements with Bulgaria, China, North Korea and a Protocol Agreement with SCSA Zone VI for the Zone VI U20 Youth Games; UK, Flanders, Cuba agreements renewed

• Arranged for 19 exchanges to be implemented in line with MOUs (UK: 10, Romania: 1, Flanders: 2, Cuba: 1, North Korea: 2, China: 1, Netherlands: 1, Western Sahara: 1)

• Arranged visits to South Africa by the following Ministers to promote bilateral sporting ties:

o Mr Mun Jae Dok (North Korea)o Mr Mohamed Moulud Mohamed Fadel (Saharawi Republic)o Mr Wang Jun (China)o Ms Vasela Letcheva (Bulgaria) • Arranged for the participation of South Africa in the inaugural meeting of AU Ministers

of Sport held in Addis Ababa in June 2007• Hosted Meetings of Zone VI Council of Ministers in Ekurhuleni in August and

November 2008• Arranged for visits of the Minister and Deputy Minister to France to support the

Springboks in the World Cup• Support rendered to Ministry, SRSA Officials, regional WADA Office, teams and

federations on foreign travel as well as advice on entry requirements for foreign sports persons. Assisted with 1 779 sport visas, 9 work permit, 31 SA passport, 1 SA citizenship + 1 permanent residence applications

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SP: MAJOR EVENTS

– Support to Team SA during the All Africa Games in Algiers– Support to the 2008 SCSA Zone VI U20 Youth Games– Commemoration of the Battle of Cuito Cuanavale– Convened 4 inter-departmental meetings (NATCOM) to plan for co-

ordination of the following events:• 2007 Triathlon World Cup, FINA Swimming World Cup• ICC Women’s Cricket Qualifier• 2008 Women’s World Cup of Golf• ICC Inaugural Twenty20 Cricket World Cup• SASSU World University Hockey Championships and Golf Championships• 9th CANA Senior Africa Swimming Championships and CANA Zone IV Southern

Africa Championships (Swimming SA)- Provided support in hosting the following 4 events:• 2007 Triathlon World Cup• 2007 FINA Swimming World Cup• ICC Women’s Cricket Qualifier• ICC Inaugural Twenty20 Cricket World Cup held in South Africa.

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PROGRAMME PERFORMANCE

PROGRAMME 5:

FACILITIES COORDINATION

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PROGRAMME 5: FACILITIES COORDINATION

• Sport and recreation facilities planning and advocacy as well consultative workshops held in all the provinces in which 158 municipalities and 28 sport, recreation and community organizations participated.

• Existing sport and recreation facilities by type, location and condition identified in 110 local municipalities.

• Sport and recreation facilities needs by type, location and estimated cost identified in 110 municipalities.

• Basic Sport and Recreation Facility Management Programme presented to 73 municipalities.

• Advanced Sport Facility Management Programme presented to 40 municipalities.

• Specialized Turf-grass Management Programme presented to 11 municipalities.

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PUBLIC ENTITIES

South African Institute for Drug-Free Sport

• 2 923 doping control tests performed – 2 590 for SAIDS and 333 for other international organisations

• 40 education workshops, lectures and seminars presented to approximately 5 000 people

• Piloted the outreach programme at the SA Games in Bloemfontein to raise awareness of anti-doping issues among the youth

• Increased focus on out of competition testing

• Support to regional WADA office in training NADOs in Africa

• New Board appointed November 2007

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PUBLIC ENTITIES

Boxing South Africa

• Increase in licences from 857 (2006-2007) to 1 047 (2007-2008)

• Agreement signed with THETA to train officials

• The number of boxers increased by 100 over the previous financial year to 685

• The number of ring officials was maintained at 85

• The number of managers, trainers, seconds and matchmakers increased from 153 to 226

• The number of promoters increased from 34 to 50

• Achieved an unqualified report

• New CEO took up office

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PROGRAMME PERFORMANCE

PROGRAMME 3:

MASS PARTICIPATION

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PROGRAMME PERFORMANCE

PURPOSEContribute to increasing the number of

participants in sport and recreation in South Africa

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PROGRAMME GRANT

GRANT PURPOSE

• To promote sport and recreation activities through mass participation

• To develop sport in the communities and schools AND develop communities through sport

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PROGRESS AGAINST 2007/08 ENE

Achieved targets for 2007/8

• Capacity building-Institutional capacity-most Provinces took advantage of the 5% top up

• Capacity-skills development, over 19 000 youth and educators trained in sports specific coaching, basic sport & recreation administration, first aid, life skills and events management.

• 121, 2010 Mass mobilization festivals were held • At least 603 community clubs were formed with some of the hubs

called veterans hubs• Over 1100 mass participation participants were identified within a

number of federations as part of the TID programme• The 9000 people trained and placed within federations form part of

the 2,703 000 participants involved in the programme

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KEY CHALLENGES WITH THE GRANT

• Monitoring and Evaluation systems• Provincial Implementation

• Under expenditure

• Quality expenditure

• School sport implementation

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KEY SUCCESS AREAS

• The conditional grant was utilised in at-least 561 hubs (communities) and 1649 schools.

• Employment of MPP coordinators permanently in both support services and line functions of government

• Some were appointed as coaches to the provincial schools volleyball team at the schools summer Olympics

• And others received international exposure by presenting papers overseas and also identified by sponsors to do further training overseas.

• Festivals in the communities and schools, community walks, cycling races, festivals against crimes and holiday programmes

• Successful implementation of the learn to swim programme in some Provinces

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Learn To swim programme

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ERRATA

Slide 8- Project was not delivered on time due to non

adherence to ToRs

Slide 10 - Service Provider has been appointed and has

started with the reconciliation

Slide 11 - Implementation in the next financial year

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ERRATA continues..

Slide: Emphasis of Matter

- Notification for deductions has been issued to the affected staff members

- Unions are in disagreement with the directive to recover the debt

- Final Report on who to be charged will be forwarded to the EA by the end of October

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ERRAT continues..

Office of the DG

- Expedite the departmental Spending

- Corrective measures on Audit Queries

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2010

- Progress on construction and refurbishment of stadia

- Transport infrastructure and transport plan- ICT infrastructure- Safety and security operational plan- Preparations for Confederations Cup- African Legacy 2010 program- Achievements

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2010 continues…ACHIEVEMENTS

- Mid term report launch- 2009 Confederations Cup projects acceleration- 5 Stadia were earmarked and reprioritized in the host cities- 4 Stadia had reached 80% of completion target- Initial Concept plan- Safety and Security, 30 May 2008- Security Plan was handed to FIFA , 30 June 2008- Transport Plan was handed to FIFA, 30 May 2008- Provinces and 4 Host Cities are fine tuning their operational plans- Held Security

Summits- Business opportunities Conferences in 5 Provinces ( MP, FS, EC, LMP and GP)- Hosted the AU 2010 Technical workshop in PTA- in line with the Heads of State

Declaration –Addis Ababa- Monthly Media Briefings- to general public and international community- Participated in various National and International Exhibitions- Annual Survey on the Economic Impact Study- 10 Stadia projects was commissioned

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2010 continues…

ACHIEVEMENTS

- Assisted the SABC and African Broadcasting Union during the March 07 first conference to discuss 2010 WC and other Sport related challenges in the continent

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ERRAT continues..