2018-2019 Annual Report of Sport and Recreation South Africa

PRESENTATION TO THE PORTFOLIO COMMITTEE ON SPORTS, ARTS AND CULTURE - The 2018-2019 Annual Report of Sport and Recreation South Africa (SRSA) DATE: 09 / 10 / 2019 BY: MsSumayya Khan ACTING DG:SRSA 1

DISCIPLINE 1: General Information SRSA

BACKGROUND & MANDATE • The main responsibility of SRSA is to develop national policies and guidelines for sport and recreation in the country. Partners assisting with implementation are provinces and municipalities as well as SASCOC, National Federations, and other agencies such as NGOs. • Despite the delivery of sport and recreation in three different spheres of Government, the actions and initiatives within SRSA’s mandate were coordinated to maximise impact. • The Department administers two public entities namely; Boxing South Africa(BSA) and the South African Institute for Drug-Free Sport (SAIDS). SRSA

LEADERSHIP • While the Department was led politically by Minister TokozileXasa (MP) and her deputy, Mr Gert Oosthuizen (MP) during 2018/19, it is currently being led by Minister Nathi Mthethwa, MP, deputised by Ms NocaweMafu, MP. • Mr Alec Moemi, who is the former administrative head of the Department (DG) left SRSA at end of July 2019. His deputy, Ms Sumayya Khan, is now the Acting DG. She will hand over to the DG of the merged Department of Sports, Arts and Culture w.e.f. 1 April 2020. • While 2 of the 4 vacant Chief Directors’ posts were filled in May 2019, 1 CD (CFO) left SRSA at the end of 2018/19. Since September 2019, the 3 vacant CD posts (incl. that of CFO), were filled in an acting capacity.

STRATEGIC INTENT • The Vision of Sport and Recreation South Africa (SRSA) is ‘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 having 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. SRSA

PERFORMANCE OVERVIEW • During the period under review, the Department had 35 targets of which 32 were achieved. This translates to an achievement of 91.4% of the targets. • Programmes 1 and 2 failed to achieve one target each out of six (ICT indicator had 2 targets) and 12 targets respectively, while Programme 5 failed to achieve one of its 2 targets. • Programmes 3 and 4 achieved 100% of their seven and eight targets respectively. • The Department obtained the 6th Consecutive Clean Audit Opinion on both performance & financial information. • The achievement was reached through 148 staffmembers working as functional units and in task teams. • R1 076 billion of the allocated R1 090.8 billionwas spent. This translates to expenditure of 98,6%. SRSA

Report of the Auditor-General to Parliament on Vote no. 40, Department of Sport and Recreation South Africa AGSA found as follows: • the audit of the financial statements: the financial statements presented fairly, in all material respects, the financial position of the department as at 31 March 2019 and its financial performance and cash flows for the year then ended… • the audit of the annual performance report: No material findings on the usefulness and reliability of the reported performance information for the selected programmes, were raised. • the audit of compliance with legislation: Nomaterial findings on compliance with the specific matters in key legislation set out in the general notice issued in terms of the PAA, were raised. • internal control deficiencies: Nosignificant deficiencies in internal control, were identified. SRSA

AUDIT AND RISK COMMITTEE REPORT • The Audit and Risk Committee has reviewed and accepts the opinion of the Auditor-General of South Africa. • The Committee concurs and accepts the conclusions of the Auditor-General of South Africa on the annual financial statements and annual report. • The Audit Committee is of the opinion that the audited annual financial statements and annual report should be accepted and read together with the report of the Auditor-General of South Africa. 8 SRSA

FINANCIAL RESOURCES SUPPORTING PERFORMANCE

REASONS FOR UNDER-EXPENDITURE Main under-spenders: Administration • The under-spending was mainly due to the unfilled vacancies. Sport Infrastructure Support • The underspending was due to the delay in signing the MOUs from with the various municipalities which were identified for the delivery of outdoor gym facilities. • Vacant posts that were not filled in Pg-5. SRSA

DISCIPLINE 2a: Performance Information – Non-Achievements [less than 100%] & Major Achievements, where 100% was achieved. SRSA

PERFORMANCE OVERVIEW The next slides cover the following: • % achievement per programme against programme targets [not departmental] • Targets not achieved per programme • Reasons for deviation • Corrective actions. SRSA

PROGRAMME PERFORMANCE 5 PROGRAMMES: 1. Administration 2. Active Nation 3. Winning Nation 4. Sport Support Services 5. Sport Infrastructure Support SRSA

PERFORMANCE OVERVIEW – Prog.1 • Achieved 83.3% against its set targets. • Targets not achieved: • Percentage of invoices paid within 30 days: • Quarter 1: one invoice, carrying a total value of R171 450.00. Quarter 2: one invoice (R13 506.91); • Quarter 3: one invoice (R27 400), and • Quarter 4: two invoices (R392.95). • Reason: • Among other things, system challenges, such as slowness, the fourth quarter transaction volumes put pressure on the (BAS) payment system, with some payments ending up not being captured. • Disputed invoices that retain the original submission date, even after resolution of the dispute. Resolving this challenge remains one of our priorities because of the implications that non-adherence has, especially to small businesses. SRSA

PERFORMANCE OVERVIEW – Prog.1 • Achieved 83.3% against its set targets. • Targets not achieved: • Percentage of invoices paid within 30 days: • Corrective Action: • The Department will continually engage with the service providers prior to invoicing. • The disputed invoices will have to be re-dated after resolution. • A system of isolating disputed invoices is being put in place to ensure that such invoices do not affect the overall invoice payment age. Service providers will also be engaged herewith. • Internal staff are also sensitised to the implications of for example stamping on an invoice, the date of the invoice as written by the service provider, as opposed to the day it was received. SRSA

PERFORMANCE OVERVIEW - Prog.2… • Achieved 91.7% against the set targets. • Targets not achieved: • Thenumber of people actively participating in organised sport and recreation events. • Reasonsinclude: • Provinces do not always report in line with the technical indicator description relating to their conditional grant-funded indicators. As a result, some of their reports are disregarded, once it is clear at the departmental second line of defence that they cannot stand the audit test. • Workshopping of representatives from the provinces was undertaken to enable them to further workshop all officials who compile performance data and reports from the districts. It now rests with provinces to further engage their employees in the districts, to ensure that they understand what is required. • SRSA is also continuing to engage with provinces where there are still challenges. SRSA

PERFORMANCE OVERVIEW - Prog.2… • Corrective Actionsinclude: • Where necessary, the monitoring and evaluation unit will visit provinces that still require assistance, especially at the time when they verify their performance information. • The Department continues to meet at least quarterly with provinces to iron out common problems and come up with solutions, as well as to share good practice by other provinces. • The Director-General also engages the Heads of Sport Departments at HeadCom on sector indicators implementation matters. The Department continues to monitor the targets set by provinces closely, to ensure that they contribute adequately to the national targets. • The Chief Directors’ Forum has just been resuscitated by the new CD: Active Nation to resolve issues raised at quarterly grant meetings; escalate relevant matters to HeadCom, and enable standardized implementation of HeadCom resolutions. 17 SRSA

PERFORMANCE OVERVIEW - Prog. 3 The Programme Achieved 100% against its set targets (7). Major achievements include: Athletes who received scientific support • Due to the support that was required for the potential Commonwealth Games athletes, more athletes were supported in addition to the ones on OPEX and the supported up-and-coming athletes. Major events supported • Some events that were unknown or not yet officially communicated at the time of planning, eventually were processed to the Department. SRSA

PERFORMANCE OVERVIEW - Prog.4 The Programme Achieved 100% against its set targets (8). Major achievements include: • Sixty-five sport and recreation bodies received financial and non-financial support in an effort to assist them in meeting their transformation targets per year. • This is a result of the departmental support provided to sport and recreation bodies to enable them to comply with reporting requirements. • Bilateral engagements implemented: At the time of planning, some of the engagements were not in the pipeline. • The engagements can be initiated by either South Africa or the other country.

PERFORMANCE OVERVIEW - Prog. 5 The Programme Achieved 50% against its set targets. Targets not achieved: The planned Community gyms and children’s play parks could not be constructed. Reasons include: The planned Community gyms and children’s play parks could not be constructed, because of among other reasons, lengthy community consultations and changing needs. Corrective Action: The approach is to engage in consultations before the actual targets are included in the APP. While this does not guarantee success, it reduces the risk of non-achievement. SRSA

COMPARISON WITH 2017/18 PERFORMANCE

CHALLENGES1 Implementation happened within an environment characterised by among other things: • Inadequate Legislation • Financial constraints and uneven distribution of resources. SRSA

CHALLENGES2 • Legislation that does not fully support our strategy. Efforts to amend / introduce the legislation such as NSRA; Combat Sport Act; and SAIDS Act, as well as related regulations, are moving at a slow pace because of other national legislative priorities. • Financial constraints and uneven distribution of resources across the sporting codes remain a major challenge. A significant number of federations still do not have proper administration resources, that is: human and other office infrastructure resources, which impede the effective governance of sport in general. 23 SRSA

CHALLENGES3 • Inadequacy of funding towards adequately implementing the NSRP. • - Our sport delivery system continued to be impacted • by budget constraints and the absence of adequate equitable share to implement the NSRP adopted by the sports movement and approved by Cabinet. • - SRSA continues to explore alternative funding models to ensure that our strategic goals are not compromised i.e.: optimising citizens’ access to sport and recreation; transformation of the sector; and supporting athletes to achieve international success. • - Mechanisms include: partnerships with other national government departments, provincial, and local spheres of government. 24 SRSA

CHALLENGES4 Following baseline reductions in December 2017, the Department was compelled to review targets planned over the MTEF, as well as to reconsider the project delivery modalities envisaged. As the largest baseline reduction was taken from the Mass Participation and Sport Development Grant (R31 million). It would be expected that this is where the largest impact on the targets would also be experienced. The large target of 1 000 000 people actively participating in organised sport and active recreation events was reduced to 600 000 people for 2018/19. The work to strengthen the organisational environment of the Department and make it optimally responsive to the challenges played out by the NSRP is ongoing and being intensified. 25 SRSA

Table 3.2.1 Employment and vacancies by programme as at 31 March 2019 SRSA

Discipline 2b: Performance Information – Achievements per Programme SRSA

P1: ADMINISTRATION • Corporate Services • A total of 139 employees were trained in accredited/non-accredited training courses. This amounts to 94% of all filled posts. • The external perception survey that was conducted revealed that overall, our stakeholders are aware of the challenges faced by the Department, but have needs that need to be met. The results continue to help us plan our offerings better. • Information and Communication Technology (ICT) Strategy Implementation Plan produced and reported to management quarterly. SRSA

P2: ACTIVE NATION 1 • The number of people actively participating in sport and recreation promotion campaigns and events was exceeded by over 6000, because of increased interest from communities, especially in mass-based events such as the Big Walk, National Recreation Day, and Ministerial Outreaches. This target relates to SRSA-led activities. • The school championship through four segments, reached 6 316 participants. • Number of learners participating in school sport tournaments at a district level exceeded the target by over 70 000 participants. This is because more schools have shown interest to participate in the programme, especially that some of the tournaments were a stepping stone towards participation in the provincial and national school sport championships. SRSA also improved engagement with the provinces. • Targeting is still conservative given the unstable feeder system managed by DBE. Sustainability of the high numbers is suspect. 29 SRSA

ACTIVE NATION 2 • Number of schools, hubs and clubs provided with • equipment and/or attire as per the established • norms and standards, was exceeded by over 463 • beneficiaries. The outreaches undertaken by political • principals, added to the increased support of schools, • clubs, and hubs. • Eight sport and recreation campaigns and events were successfully hosted: Youth Camp, Move for Health, Big Walk; National Recreation Day; Indigenous • Games Festival; and the Unite Campaign (implemented • through the 67 Minutes of Mandela; Rural Sport Development Programme; and Community Outreach Programme. SRSA

ACTIVE NATION 3 • Sport academies supported: Because of the high • demand for scientific support, especially ahead of • major events in 2018, more (20 more than planned) district academies were supported to further support athletes. • There was also intensified engagement of provinces for submission of performance evidence. In addition, SRSA withheld funds to provinces that were not complying to the set performance and/or reporting arrangements. • As a result, the number of athletes supported by sports academies was also exceeded by over 1 900. SRSA

P3: WINNING NATION1 • 64 talented athletes benefited from the Ministerial Sport Bursary Programme. These athletes are placed in accredited sport focus schools, and where there is no sport focus school closer to their homes, in a non-accredited school that is good in sport and academically. • The number is higher in that more learners succeeded when taken through sport science testing, to confirm if their talent is backed up by the necessary requirements such as endurance and related elements, before being admitted to the programme. • Number of athletes supported through the scientific support programme was exceeded by 120 athletes because of increased need for support, to the then potential Commonwealth Games athletes. • Four SASCOC MoU progress reports received and evaluated. SRSA

WINNING NATION2 • Five athletes’/teams recognition events were held during the period under review. This was because of good performances displayed at various international events such as the Commonwealth Games, as well as the hosting of the national sports awards and the regional sports awards. • Four drug-free support agencies, namely: SAIDS; WADA; CDA; and RADO were supported during the period under review. The support of these agencies enhances the fight against doping in sport. • National and international sporting events, exhibitions or conferences used to showcase SA as a sports tourist destination: The BRICS Games. SRSA

WINNING NATION3 • Ten (4 more than planned) major events received either ministerial or cabinet approval and related support in terms of the Bidding and Hosting Regulations. • The target was exceeded because some of the events were unknown or not yet officially communicated at the time of planning. They were, however, eventually processed to the Department through SASCOC. They are: • 2018 United World Senior Wrestling Ranking Tournament • 1st ASPC African Forum • Ironman 70.3 • 2018 World Junior Powerlifting Championships • 24th Tug of War World Champs • 2018 COSAFA Women’s Championships • 2018 Majorette Sport World Federation III World Champs • Commonwealth Karate • BRICS Games • Drowning Prevention Conference. 34

P4: SPORT SUPPORT1 • Sport and recreation (s & r) bodies receiving financial and non-financial support per year: There was improved compliance by s & r bodies. This enabled the Department to allocate funds to an additional 5 sport and recreation bodies. • All planned (19) NFs submitted completed data sheets on their transformation towards a transformation status report. • Bilateral exchange programmes were conducted with Bulgaria, China, Cuba, and Palestine, with the intent of ultimately signing bilateral agreements. • Multilateral engagements supported: The multilateral • engagements supported by the Department relate to: AUSC Region 5, BRICS in relation to the BRICS Games, International School Sport Federation (ISF), and UNESCO. SRSA

P4: SPORT SUPPORT2 • Two good governance monitoring reports were generated. • Two Sports Trust MOU progress reports were evaluated. • One EPG report with comparative and NF-specific information on transformation was published. • The Report reflects significant progress since the introduction of the charter. While the commitment to the process, the quality and the reliability of data submitted by federations has consistently improved, there are still gaps that need to be filled. SRSA

P5: SPORT INFRASTRUCTURE SUPPORT • This programme achieved 50% against its set targets. • Facilities in all targeted municipalities were provided with technical assistance towards construction of their sport facilities, in line with the set norms and standards. • The supported municipalities were 38, including support to facilities that were carried over from the 2017/18 financial year.

DISCIPLINE 3: Governance SRSA

RISK MANAGEMENT • SRSA has adopted an enterprise risk management approach. • This approach is implemented by employees at every level of the organisation and applied in strategic settings. It is also designed to identify potential events that may aﬀect the organisation, and thus ensures that risks experienced are within its risk appetite, in order to provide reasonable assurance regarding achievement of the organisation’s objectives. • The Department has developed an enterprise risk management framework and policy, which guides the process of identifying and managing risks. • The document is reviewed regularly to ensure that it remains current and relevant. Management has developed an annual risk management implementation plan that was endorsed, noted and approved by the Audit and Risk Committee and the Director-General. 39

RISK MANAGEMENT • With regard to the management of risks, the Department has developed and approved a combined assurance framework that outlines the various lines of defence or available assurance providers of the Department. • A combined assurance plan has been developed and approved, and is monitored and reviewed on a quarterly basis by the Audit and Risk Committee. • The Department’s fraud prevention plan was developed and approved. The plan forms part of the anti-fraud and corruption policy. 40

AUDIT COMMITTEE REPORT • The Audit and Risk Committee has reviewed the Department’s implementation plan for audit issues raised in the prior year and is satisfied that the Department has put more effort into improving the internal control environment. • A recurrence of few similar audit findings was identified by the Auditor-general of South Africa during the year under review. • The Audit and Risk Committee has reviewed and accepts the opinion of the Auditor-General of South Africa. The Committee concurs and accepts the conclusions of the Auditor-General of South Africa on the annual financial statements and annual report. • The Audit Committee is of the opinion that the audited annual financial statements and annual report should be accepted and read together with the report of the Auditor-General of South Africa. 41 SRSA

DISCIPLINE 4: Human Resource Management SRSA

Table 3.2.1 Employment and vacancies by programme as at 31 March 2019 SRSA

Table 3.2.2 Employment and vacancies by salary band as at 31 March 2019 SRSA

Table 3.3.1 SMS post information as at 31 March 2019 SRSA

Table 3.5.1 Annual turnover rates by salary band for the period 1 April 2018 to 31 March 2019 SRSA

Table 3.10.1 Sick leave for the period 1 January 2018 to 31 December 2018 SRSA

Table 3.10.3 Annual leave taken during the period 1 January 2018 to 31 December 2018

DISCIPLINE 5: Annual Financial Statements for the year ended 31 March 2019

EXECUTIVE SUMMARY • The departmental financial performance as at 31 March 2019 are as follows: • The overall spending is at R1,076 billion which represent 98.6% of the total budget allocation out of a total budget of R1,091 billion. • Spending on Compensation of employees is at 89.9% totalling R99,8 million out of a budget of R110,9 million. Under spending is due to high vacancy rate in the department. The department is in the process of filling priority posts. • Expenditure on Goods and services is at 97.9% totalling R166,4 million out of a budget of R169,9 million. Under spending is due to MIG earmarked funding which was not fully utilised due to non signing of MOU’s by the identified municipalities. • Transfer payments’ spending is at 100.0% totalling R807,3 million out of a budget of R807,4 million. • Payment for Capital Assets expenditure is at 99.9% totalling R2.4 million out of a budget of R2.5 million. SRSA

2018-2019 Annual Report of Sport and Recreation South Africa