QUARTER 2 REPORT Mr. Lesedi Mere Chief Financial Officer

1. QUARTER 2 REPORT Mr. Lesedi Mere Chief Financial Officer

2. EXECUTIVE SUMMARY • The departmental financial performance as at 30 September 2017 are as follows: • The overall spending is at R474.7 million which represent 44.5%of the total budget allocation out of a total budget of R1.066 billion. • Spending on Compensation of employees is at 47.6% totalling R50.5 million out of a budget of R106.1 million. • Expenditure on Goods and services is at 46.6% totalling R75.3 million out of a budget of R161.4 million. Expenditure will increase in the third quarter when IG, NRD, SASRecon and Big Walk payments are effected. • Transfer payments’ spending is at 43.5% totalling R346.5 million out of a budget ofR796 million.

3. EXECUTIVE SUMMARY NB • DoRA transfers were scheduled to be at 50% in the second quarter (20% Qrt1 and 30% in Qrt2), However 7 of 9 provinces were penalised between 5% and 25% of their second transfer thus the under spending. • Transfers to Departmental Agencies were transferred in Qrt1, and the spending is at 66.6% which is higher than the arithmetic expected 50% at end of Qrt 2 • Payment for Capital Assets expenditure is at 81% totalling R2.4 million out of a budget of R2.9 million. The expenditure has increased following purchasing of some computers and office equipment for some Senior managers and Ministry.

4. OVER ALL DEPARTMENTAL SUMMARY

5. PROGRAMME 1 - ADMINISTRATION • Overspending on Transfersis due to leave gratuity payments

6. PROGRAMME 2 – ACTIVE NATION • Under spending on Transfers is due penalties on DoRA transfers in Qrt 1

7. PROGRAMME 3 – WINNING NATION • Under spending on Transfers is due slow receiving of invoices from schools/universities (Ministerial bursary)

8. PROGRAMME 4 – SPORT SUPPORT • Under spending on Transfers is due slow transferring to NPIs due to compliance issues

9. PROGRAMME 5 – INFRASTRUCTURE SUPPORT

10. THANK YOU