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A presentation to the Portfolio Committee of Parliament of SA

This presentation provides an overview and analysis of the CGE budget for the financial period of April 2013 to March 2014. It outlines the legislative framework, spending patterns, and trends, as well as financial management issues.

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A presentation to the Portfolio Committee of Parliament of SA

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  1. A presentation to the Portfolio Committee of Parliament of SA Budget linked to the Annual Performance Plan for the financial period : 1 April 2013 to 31 March 2014 Vote 8

  2. Outline Background legislative framework Purpose of presentation The CGE Budget in Brief The budget over the MTEF period – An overview 2013/14 allocations–APP costing, Analysis, comparatives & trends Financial management and the PFMA Vote 8

  3. 4 Legislative Framework • Chapter 13 of the Constitution of South Africa provides that ” money may be withdrawn from the National revenue Fund only in terms of an appropriation by an Act of Parliament, or as a direct charge……..” • The Framework for strategic plan and Annual Performance plans of 2010 propagates that operational budgets be linked to the institutions strategic objectives • The object of the PFMA is to secure transparency, accountability and sound management of the resources…..Chapter 1 of the Act These are citations from the governing authorities/mandate/prescripts Vote 8

  4. Introduction The purpose of this presentation is therefore to provide an outline to the Committee on : • A funding background & detailed spending plans set to advance the Commission’s Legislative mandate for the 2013/2014 period • Highlight spending patterns and trends over the medium term and indicate linkages to strategic plans and APP • Related financial management issues Vote 8

  5. A brief analysis of the CGE budget

  6. The nature and structure of the CGE budget • Operations are run primarily through 3 main programmes : Governance, Corporate Support and Main Service?/Core program • The top three spending drivers are: • Compensation of Employees 71% ( We are a service driven & human intensive) • Professional Services 5% ( Litigations, audit fees, etc) • Travel& Accommodation, event management & media – 11% (outreach & visibility are at the core our strategy) • Reports production and printing – 3% ( All work published after each research study/investigation • Telecommunications, Courier Services – 4% (Offices country-wide) • These make up 94% of the total spending thus only 6% (+/- R4.3 m) is relatively variable. This is strictly prioritized to cover All office overheads – Less flexibility • This is a historical as well as projected pattern of spending even in the outer years of the medium term plan Vote 8

  7. Medium term Allocation per program 51% is spent on core program Growth mainly due to cost of living adjustments realising higher than inflation – 6.6 % for 2013-2014 Vote 8

  8. Programme expenditure per economic classification Vote 8

  9. Detailed expenditure over the medium term Vote 8

  10. Comparatives; Past, present and projected spending

  11. Spending over the MTEF period...1 Vote 8

  12. Spending over the MTEF period...2 • Since 2011/2012, spending has shifted from administration to core program – budgeted for over 50% of the allocation • Current year (2012/2013) results, reflects an under-spending of R2m (or 4% of the original allocation) • The outer MTEF projections are incrementally determined, on the basis of inflation parameters from National Treasury Vote 8

  13. 2013-2014 – Operational Budget

  14. Consolidated operational budget – 2013-2014 • Core program: from the salaries bill of R45 m, 55% is earmarked for main program (R25m) • Overall COE  (71% of total budget), of which 39 % is spent on main program • G&S  (29% ) where main program constitutes 41% • Main program makes up 51% of total budget Vote 8

  15. 2013/14 Programme budget R63, 1 million • The Core service deliver sub-programme – 51% (R32 million) of the total budget (R63, 1 million) • Commissioners programme -17% (R10, 7 million) • Corporate Services – 32% (R20 million) • Capital expenditure – No resources available (0%) Quarterly reporting

  16. Funding situation • The allocation has only been earmarked for operational activities in terms of the APP • Some strategic options in the APP could not be funded from the available allocation • Very critical Capital Expenditure requirements remain unfunded; estimated at R8.7 m • IT infrastructure is obsolete and old (Requires R6m) • Vehicle fleet has aged – (R2.2 m required) • Office furniture & equipment – (R500k) Vote 8

  17. 2013-2014 – Budget per strategic objctive

  18. Strategic objective 1 Vote 8

  19. SO 1 – Key drivers of spending • This SO deals with the creation of an enabling legislative framework • The SO consumes 14% of the total budget, driven by travel and accommodation, printing of reports in addition to the allocated overheads • Employee Cost accounts for 25% of COE for main program or R6m Vote 8

  20. Strategic objective 2 Vote 8

  21. SO 2 – Key drivers of spending • The SO focuses on the protection and promotion of gender rights. Therefore Education and awareness activities are planned • Travel, Accommodation, venues and related R3m) will be used to carry-out targets in the APP • COE for officers across line functions will account for about 65% of cost in the main program Vote 8

  22. Strategic objective 3 Vote 8

  23. SO 3 – Key drivers of spending • This SO is set to monitor the state compliance to international instruments, in which multi-disciplinary teams are used to research, monitor and develop reports for Parliament and multi-lateral institutions • The expenditure of R2.8 m constitutes 9% of the budget for the main program. This is largely made out of by salaries (personnel time) Vote 8

  24. Strategic objective 4 Vote 8

  25. SO 3 – Key drivers of spending • The Governance, administration and management is anchored on this SO: Commissioners, CEO and Support functions carry out activities to ensure accountability, efficiencies, effectiveness of operations • R31m or 49% is earmarked for spending under this SO • Salaries –R19 m • G&S – R12 m Vote 8

  26. Financial Performance – 1 April’12 to 31 Dec 2012

  27. Other Financial Management Matters • Risk Management – risk assessments were made for each strategic objectives • Risk treatment plans – develop to ensure that targets are met, efficiently, economically and effectively • APP implementation plans have been developed to ensure effective control • Cashflow management in place for continuous availability of the planned resources • Additional funding: Retention of surplus, Fund raising options are in the APP and other plans Vote 8

  28. end • Thank you

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