Report of the Standing Committee on Appropriations on the Adjustments Appropriation Bill [B10 – 2014] [National Assembly (Section 77)], Dated 19 November 2014

The Standing Committee on Appropriations having received a briefing from the National Treasury on the 2014 Adjustments Appropriation Bill and engaged with identified departments, reports as follows:

1. Introduction

The Minister of Finance tabled the Medium Term Budget Policy Statement (MTBPS) on 22 October 2014, outlining the budget priorities of government for the medium term estimates. The 2014 MTBPS was tabled in Parliament with the Adjustments Appropriation Bill [B10 - 2014] and the Division of Revenue Amendment Bill [B11 - 2014]. Section 12 (15) of the Money Bills Amendment Procedure and Related Matters Act, No. 9 of 2009 (Money Bills Act) provides that in the event of a revised fiscal framework, an Adjustments Appropriation Bill must be referred to the Committee on Appropriations in the National Assembly only after the Division of Revenue Amendment Bill has been passed by Parliament. Accordingly, the 2014 Adjustments Appropriation Bill was referred to the Standing Committee on Appropriations (the Committee) by the National Assembly on 4 November 2014, for consideration and report.

National Treasury as well as two departments affected by the adjustments in respect of the budget for the 2014/15 financial year were invited to brief the Committee on the 2014 Adjustments Appropriation Bill (the Bill). These were the Departments of Tourism and Economic Development. The Department of Sports and Recreation was requested to furnish the Committee with reasons for its adjustments in writing.

2. Overview of 2014 budget adjustments

The total estimated expenditure for the 2014/15 budget has been revised downward by R6.223 billion from R1.143 trillion to R1.136 trillion. This still represents an increase in expenditure of 8.5 per cent over the 2013/14 outcome.

The 2014 adjustment budget makes provision adjustments in vote appropriations which amount to R1.270 billion as follows:

· R157.724 million for roll-overs;

· R789.618 million for unforeseeable and unavoidable expenditure;

· R705.127 million in self-financing expenditure;

· R620.0 million for allocation of amounts announced by the Minister of Finance in the 2014 Budget Speech; and

· R1.003 billion in declared unspent funds.

The budget adjustments to estimates of direct charges against the National Revenue Fund amount to R342.156 million less than anticipated at the time of the main budget.

The budget adjustments to departments and estimates of direct charges are offset against the R3 billion unallocated reserves set aside in the main Budget. In addition, the revised budget framework makes provision for approximately R3.65 billion in projected underspending at the national government level, and R500 million in local government repayment to the National Revenue Fund.

Table 1: 2014/15 Budget Roll-overs

Vote and Vote Description		R thousand
3	Cooperative Governance and Traditional Affairs	80 214
15	Basic Education	9 727
19	Social Development	10 500
29	Energy	18 901
34	Science and Technology	9 700
42	Water and Sanitation	28 682
Total		157 724

Source: National Treasury (2014)

Total roll-overs for the 2014/15 adjustment budget amount to R157.724 million. The budget amount for roll-overs allocated in the budget adjustment process has been in decline in recent years. Roll-overs amounted to R3.737 billion in 2011/12, R1.506 billion in 2012/13, R894.094 million in 2013/14 and R157.724 million in 2014/15.

The roll-over amounts approved for the 2013/14 budget adjustment include R80.214 million to the Department of Cooperative Governance and Traditional Affairs which has been rolled over to a number of municipalities whose allocations were terminated due to underspending under Section 18 (1) (b) of the Division of Revenue Act.

For the Department of Basic Education, an amount of R9.727 million has been rolled over for the HIV and AIDS conditional grant in KwaZulu-Natal for the commitments made on HIV and AIDS learner and teacher support materials, first aid kits and weighing scales for schools.

The Department of Social Development receives a roll-over amount of R10.5 million for its programme on Social Policy and Integrated Service Delivery to provide for the final phase of the setting up of provincial distribution centres and community nutrition development centres in all nine provinces for the implementation of the household food nutrition and security programme.

The Department of Energy receives a roll-over amount of R18.901 million for its programmes on Energy Policy and Planning, Petroleum and Petroleum Products Regulation; and Electrification and Energy Programme and Project Management. Specifically, R4.970 million has been rolled over for payments to service providers to conduct a study on the energy footprint and energy savings potential in heavy industries. The study was conducted to support evidence based policy development in the integrated energy plan. In addition, the study is expected to inform the future targets of the national energy efficiency strategy from 2016 to 2030.

An amount of R5.027 million has been rolled over for payments to service providers to conduct a fuel sampling and testing exercise. The objective of the project is to monitor compliance to fuel specifications and standards regulations and gather information about compliant and non-compliant petroleum operators in relation to legislation; track compliance performance and attain broader understanding of compliance challenges. It is envisaged that through the fuel sampling and testing project, the department will be able to monitor the quality of fuel being sold in the country. Finally, R8.904 million has been rolled over for payments to non-grid service providers to finalise non-grid electricity connections to households.

The Department of Science and Technology receives R9.7 million for its programme Research, Development and Support for the construction of the Cofimvaba Science Centre in the Eastern Cape.

The Department of Water and Sanitation receives a roll-over amount of
R28.682 million for its programmes on Administration, Regional Implementation Support and Water Sector Regulation. Specifically, R4 million has been rolled over for the upgrading of data storage infrastructure. R18.563 million has been rolled over for regional bulk water infrastructure and R1.458 million has been rolled over for the municipal water infrastructure grant. R4.661 million has been rolled over for scientific and technical support in relation to drinking water quality, waste water and water use efficiency.

Table 2 below provides the information on unforeseeable and unavoidable expenditure.

Table 2: 2014/15 Unforeseeable and Unavoidable Expenditure

Vote No. and Vote Description		R thousand
3	Cooperative Governance and Traditional Affairs	160 951
5	International Relations and Cooperation	350 000
9	Government Communication and Information System	12 000
11	Public Enterprises	63 141
16	Health	32 595
18	Labour	19 000
27	Communications	23 230
30	Environmental Affairs	12 000
32	Mineral Resources	4 250
36	Trade and Industry	33 700
37	Transport	44 151
42	Water and Sanitation	34 600
Total		789 618

Source: National Treasury (2014)

The 2014 budget adjustments provide for unforeseeable and unavoidable expenditure amounting to R789.618 million. Funding provision for unforeseeable and unavoidable expenditure includes the following:

· R160 million for COGTA of which R156.951 million is for the repair of infrastructure damaged by disasters; and R4 million for the establishment of the Traditional Affairs deputy ministry;

· R350 million for the impact of the depreciation of the Rand on foreign currency denominated expenditure;

· R12 million for the establishment of the Communications ministry and deputy ministry;

· R63.141 million for the Department of Public Enterprises for the ninth claim submitted for damages and losses in terms of the indemnity provided to Denel Aerostructures by government in respect of the A400M military aircraft contracts;

· R32.595 million for the Department of Health for the introduction of Ebola control and prevention measures in South Africa; including the deployment of mobile laboratories, experts, training and technical support to Ebola affected countries;

· R4 million for the establishment of the Labour deputy ministry; and R15 million for the Compensation Fund in respect of the administration of public servant occupational diseases and on-duty injuries claims;

· R33.7 million for the establishment of the Department of Small Business Development;

· R44.151 million for the Department of Transport for expenditure incurred for the funeral of the late President Nelson Mandela;

· R34.6 million for the Department of Water and Sanitation for emergency national government interventions, of which R19.6 million is for the Lekwa-Taemane local municipality in respect of the operations and maintenance of the waste water treatment and bulk water treatment plants, and R15 million is for Madidi and Giyani in respect of borehole augmentation projects.

Table 3 below provides a list of unspent funds as declared by departments.

Table 3: Declared Unspent Funds

Vote and description of expenditure	R thousand
10 National Treasury	561 087
16 Health	113 000
19 Social Development	250 000
35 Tourism	78 850
Total declared unspent funds	1 002 937
National government projected underspending	3 650 000
Local government repayment to the National Revenue Fund	500 000
Total	5 152 937

Source: National Treasury (2014)

The 2014 budget adjustments provide for total declared unspent funds amounting to R1.003 billion. National Treasury declared unspent funds of R561.087 million from the Employment Creation Facilitation Fund (Jobs Fund). This is based on the scheduled requests for proposals and delays in contracting applicants for the third round of funding. The rescheduling of fundsis being effected over the medium term. The tabled 2014 Adjustment Estimates of National Expenditure (AENE) reports that the Employment Creation Facilitation has approved 91 projects (against a target of 120) and contracted 103 098 training placements with private companies (against a target of 150 000). National Treasury has introduced a number of measures including the creation of capacity within the National Treasury and collaboration with the Government Technical Advisory Centre to reach the targets by the end of the financial year. With effect from 1 October 2014, National Treasury through the Government Technical Advisory Centre has taken over the full responsibility of administering the Jobs Fund from the Development Bank of Southern Africa.

The Department of Health has declared R113 million in unspent funds on the health facility revitalisation component of the indirect national health grant, due to underspending in 2014/15.

The Department of Social Development declared unspent funds amounting to R250 million as a result of a decrease in estimated payments for social grants.

This was as a result of slower than anticipated increase in the number of newly eligible old age grant beneficiaries as a result of the means test adjustment.

The Department of Tourism declared unspent funds amounting to R78.850 million of the 2014 budget for the tourism incentive programme in the Domestic Tourism programme.

In addition to the declared unspent amounts outlined in the 2014/15 adjustments budget, there is an amount of R3.650 billion in projected under-spending.

With regards to self-financing expenditure, the 2014 budget adjustment makes available R705.127 million. This comprises of R600 million to the Department of Home Affairs for expenditure incurred in issuing official documentation which will be defrayed by revenue generated from the issuing of the documents, R25.50 million to the Department of Health for expenditure incurred in the establishment of the South African Health Products Regulatory Authority, which is funded from revenue collected by the Medicines Control Council,
R0.728 million to the Department of Correctional Services for offender gratuities which is funded from the revenue generated by hiring out offender labour, R25.645 million to the Department of Defence and Military Veterans for expenditure for defence activities, which is funded from selling equipment and spares procured through the special defence account, R3.254 million to the Department of Energy for expenditure incurred for skills development and training, which is defrayed by revenue received from the Energy and Water Sector Education and Training Authority and the Chemical Industries Sector Education and Training Authority for the provision of learnership programmes and special development projects and R50 million to the Department of Trade and Industry for unitary payment in respect of the public private partnership for the shared campus accommodation, which is funded from unitary part-payments received from public entities.

With regards to funding for expenditure earmarked in the 2014 Budget speech for future allocation, the budget adjustment makes available R620 million for digital broadcast migration to the Department of Communications for ICT infrastructure support. In particular, an additional R551 million has been allocated to the Universal Services and Access Fund to cover the costs of the broadcast digital migration project. In addition, an additional R69 million has been allocated to Sentech to cover the dual illumination costs relating to the digital migration project.

3. 2014 National Macro Organisation of the State

Following the 2014 national elections, the President’s appointment of Ministers and Deputy Ministers in May 2014 necessitated a reorganisation of national government departments, including the establishment of new departments. The following functions have shifted with effect from 1 October 2014 and three new votes have been created with the 2014 adjustments appropriations:

· The water affairs functionshifts from the Department of Water Affairs to the new Department of Water and Sanitation (Vote 42);

· The sanitation function shifts from the Department of Human Settlements to the new Department of Water and Sanitation (Vote 42);

· The functions related to children and people with disabilities shifts from the Department of Women, Children and People with Disabilities to the Department of Social Development;

· The function related to women shifts from the Department of Women, Children and People with Disabilities to the new Department of Women (Vote 43);

· The performance, monitoring and evaluation functions shifts from the Department of Performance Monitoring and Evaluation to the new Department of Planning, Monitoring and Evaluation (Vote 39);

· The National Planning Commission, as well as the National Youth Development Agency and the youth desk functions shifts from The Presidency to the new Department of Planning, Monitoring and Evaluation (Vote 39).

With reference to Table 4 below, indicated as Schedule 1 in the Bill, Votes listed in column 1 contain funds for departments listed in column 2, which are still in the process of being created or reconstituted.

Table 4: Schedule 1 of the Bill

Vote	Department
Communications	Department of Communications Department Telecommunications and Postal Services
Government Communication and Information System	Government Communications and Information Systems Department of Communications
Trade and Industry	Department of Trade and Industry Department of Small Business and Development

Source: National Treasury

4. Adjustments per Identified Departments

The following section contains discussions between the Committee and the identified departments below.

4.1 Department of Tourism (Vote 35)

The budget for the Department of Tourism(the Department) has been adjusted downwards by R78.9 million from an original appropriation of R1.66 billion to R1.58 billion. The downward adjustment was due to the declared underspending in the Domestic Tourism programme. Table 5 below provides the adjustments for the Department.

Table 5: 2014 Budget Adjustment for Department of Tourism

			Declared	Total			Apr-Sep 14
	Main	Virements	unspent	adjustments	Adjusted	Apr 14 -	% of adjusted
R thousand	appropriation	and shifts	funds	appropriation	appropriation	Sep 14	appropriation
Administration	221 819	2 800	–	2 800	224 619	91 266	40.6
Policy and Knowledge Services	925 162	3 700	–	3 700	928 862	683 990	73.6
International Tourism	51 916	(6 500)	–	(6 500)	45 416	17 852	39.3
Domestic Tourism	463 213	–	(78 850)	(78 850)	384 363	201 226	52.4
Total	1 662 110	–	(78 850)	(78 850)	1 583 260	994 334	62.8

Source: National Treasury (2014)

The Department recorded expenditure of R994.334million or 62.8 per cent of the adjusted appropriation of R1.583 billion as at the end of September 2014. The Policy and Knowledge Services programme showed an expenditure of R683.990 million or 73.6 per cent of its adjusted budget allocation of
R928.862 million. Under the International Tourism programme, an expenditure of only R17.852 million or 39.3 per cent against an adjusted amount of
R45.416 million has been recorded.

With regards to virements, an amount of R6.5 million had been moved from the International Tourism programme to Administration (R2.8 million) and Policy and Knowledge Services (R3.7 million) programmes respectively. Thevirementof 12.5 percent is in excess of the 8 per cent as prescribed by section 43 of the Public Finance Management Act, No 1 of 1999 (as amended). The Department submitted the following main reasonsfor the virement as follows:

· Delays in filling posts which amounted to R2.8 million being moved to the Administration programme for equipment and replacement of vehicles; and

· The amount of R3.7 million was transferred to South African Tourism to procure translation and distribution of marketing collaterals to the South African missions abroad.

In respect of the declared unspent funds amounting to R78.9 million, it was reported that there were delays in the appointment of staff and establishment of governance and management structures for the implementation of the newly introduced Tourism Incentive Programme (TIP). The TIP, which is aligned to the National Tourism Sector Strategy was introduced in the 2014/15 financial year to support growth, development and transformation in the tourism sector.

The Committee noted that the tourism sector contributed about 9 per cent to South Africa’s Gross-Domestic product (GDP) and as such viewed it as critical to stimulating economic growth. To this end, the Committee expressed its concern at the apparent lack of capacity in the Department to spend its allocated budget and made specific reference to the R78.9 million allocated towards the Tourism Incentive Programme (TIP) which has been surrendered to the national fiscus. Furthermore, the Committee was of the view that that more resources needed to be allocated towards the tourism sector but that the Department needed to demonstrate its capacity to spend.

The Committee notes with concern the Department’s reported current vacancy rate of 8.4 per cent. The department reported that 250 thousand jobs are to be created through the National Tourism Sector Strategy (NTSS) between 2011 and 2020. The Committee indicated it will closely monitor the job creation and economic development impact of the NTSS in the medium term.

The Department had a target of creating 5 625 full time equivalent jobs through the social responsibility programme of the Expanded Public Works Programme (EPWP) for the first half of the year. However, mid-year performance outcomes show that the Department had only created 635 jobs. In its submission, the Department indicated that work is currently underway and that total annual target for jobs will be achieved by end of the financial year. The Committee is of the view that the job creation efforts of government must entail the attainment of targets.

4.2 Department of Economic Development (Vote 28)

The Department of Economic Development (the Department) received a main appropriation of R696.9 million. There was no upward or downward adjustments to the main budget though there were budget adjustments across all four programme. Table 6 hereunder provides the adjustments which were made for the Department.

Table 6: 2014 Budget Adjustments for Economic Development Department

	Main	Virements	Total adjustments	Adjusted	Apr 14 -	% of adjusted
R thousand	appropriation	and shifts	appropriation	appropriation	Sep 14	appropriation
Administration	79 460	15 392	15 392	94 852	35 044	36.9
Economic Policy Development	23 075	(11 183)	(11 183)	11 892	5 645	47.5
Economic Planning and Coordination	579 064	2 062	2 062	581 126	273 193	47.0
Economic Development and Dialogue	15 261	(6 271)	(6 271)	8 990	4 611	51.3
Total	696 860	–	–	696 860	318 493	45.7

Source: National Treasury (2014)

The Department recorded an expenditure of R318.493 million or 45.7 per cent of an allocated R696.860 million. Programme 1 (Administration),had spent only R35.044 million or 36.9 per cent against an adjusted amount of R94.852 million.The main reason for the slow expenditure was relates to vacancies not being filled. The Department reported that it was in the process of undertaking a review of its organisational structure and set skills. This review was as a result the re-alignment of its Annual Performance Plan following the elections to six newly adopted core strategic objectives. The Department reported that 116 positions out of the approved 146 funded posts were filled as at 30 September 2014.

With regards to virements, an amount of R11.272 million (48.8 per cent) was reprioritised from the Economic Policy Development programme towards funding for the Small Enterprise Finance Agency’s economic competitiveness and support package. The Department reported that the reprioritised funds were initially earmarked for compensation of employees (R6.387 million); and venues, travelling and facilities (R4.885 million).

Similarly, funds were shifted from the Economic Development and Dialogue programme amounting to R8.377 million (54.5 per cent) which was reprioritised towards Small Enterprise Finance Agency’s economic competitiveness and support package and the purchase of labour saving devices. The reprioritised funds were initially earmarked for vacant posts and operational costs accompanying these posts. The Department submitted that these posts will be filled in the in line with the revised strategic objectives and APP.

The Committee expressed concerns with regard to the magnitude of the Department’s virements. The Committee emphasised that significant in-year shifts are indicative of a lack of coherent planning, and that the Department should ensure that they plan and budget accordingly.

The Committee viewed the Department’s role and mandate as key in facilitating economic growth and job creation, and was thus concerned that delays in the filling of strategic posts and the reprioritisation of funds from these vacant posts will adversely affect its ability to carry out its strategic role of accelerating growth and development. In addition, the Committee was of the view that although the Department’s expenditure performance for the first six months was on track, this was mainly attributable to transfers made to its entities and the Department had in fact underperformed in its Programmes (e.g. Economic Policy Development, and Economic Development and Dialogue) that relate to its core mandate.

The Committee encouraged the Department to link actual performance of Key Performance Indicators (KPIs) with expenditure and also to reflect on actual outcomes such as number of jobs created as a result of KPIs achieved. The Committee implored the Department to finalise their organisational structure and fill all strategic vacant posts.

4.2 Sport and Recreation South Africa (Vote 20)

The Department of Sports and Recreation South Africa’s (Department) received a main appropriation of R970.404 million in the 2014 main budget. The Department’s budget has not been adjusted from the initial appropriation as there were no additional adjustments allocations effected. There were budget adjustments across three programmes

Table 7: 2014 Budget Adjustments for Sports and Recreation South Africa

Programme	Main	Virements	Total adjustments	Adjusted	Apr 14 -	% of adjusted
R thousand	appropriation	and shifts	appropriation	appropriation	Sep 14	appropriation
Administration	131 317	(14 577)	(14 577)	116 740	48 602	41.6
Active Nation	615 197	4 890	4 890	620 087	296 794	47.9
Winning Nation	91 322	(13 200)	(13 200)	78 122	33 857	43.3
Sport Support	122 167	22 887	22 887	145 054	31 684	21.8
Infrastructure Support	10 401	–	–	10 401	1 462	14.1
Total	970 404	–	–	970 404	412 399	42.5

Source: National Treasury (2014)

The Department recorded an expenditure of R412.399 million or 42.5 per cent of the main appropriation of R970.404 million. The Infrastructure Support programme had spent only R1.462 million or 14.1 per cent of its allocated funding of R10.401 million. The Sport Support programme had spent only R31.684 million or 21.8 per cent of its allocated funding of R145.054 million. In its submission to the Committee, the Department outlined the main reasons for the poor expenditure performance as follows:

· Delays in the filling of vacancies due to a moratorium on recruitment put in place for the organisational review to be finalised; and

· Transfers withheld to the Limpopo and Eastern Cape provinces due to non-compliance with grant framework requirements.

With regards to virements, the Department requests to reprioritise an amount of R14.577 million from the Administration programme to the fund the Nelson Mandela Sport and Culture Day, Indigenous Games Festival, The Big Walk, and Youth Camp Events. The reprioritised funds entail R4.577 million from vacant posts in the Finance and Supply Chain Management units and R10 million from lease payments. The Department submitted that there is currently a moratorium in place for vacant posts pending the finalisation of the organisational review process.

The amount initially intended for Lease Payments was requested to be shifted to the hosting of the Netball Premier League, the Basketball National League, and the International Karate Organisation World Cup. The Department submitted that its needs analysis for office accommodation requires that there be minimal sports facilities and additional office space to host small federations (Sport House). There were no buildings that met this requirement within the prescribed radius as provided for by the Department of Public Works. The Sport House concept is intended to enable the Department to offer transversal support services, e.g. financial administration and project management services to small sports federations.

The Department requests to reprioritise an amount of R13.200 million from the Winning Nation programme towards the Active Nation and Sports Support programmes. In particular, the funds will be directed towards increased support for the National School Sport Championship and for the subscriptions fees for the African Union Sport Council Region 5 for All Africa Games and Region 5 Youth Games.

The reprioritised funds include R6.2 million from vacant posts in the Scientific Support programme and the relocation of personnel to the Active Nation programme. The reprioritised funds also include R7 million from reductions in the provision of the Scientific Support services (under the Winning Nation programme) to focus more on talented athletes. The number of athletes supported were reduced from 71 to 32.

5. Committee Observation and Findings

The Standing Committee on Appropriations, having considered the inputs from the above stakeholders on the 2014 Adjustments Appropriation Bill made the following findings:

5.1 The Committee notes with concern the declared unspent funds of R1.002 billion and projected under-spending of R3.650 billion in the 2014 budget adjustments. Of particular concern to the Committee is the declared unspent amount R561.087 million from the Employment Creation Facilitation Fund (Jobs Fund) by National Treasury. The Committee is of the view that the declaration of unspent funds and projected under-spending should not compromise service delivery performance and thus undermine the state’s growth and development objectives.

5.2 The Committee notes that roll-over funds approved have been declining over the years. The roll-overs amounted to R3.737 billion in 2011/12, R1.506 billion in 2012/13,and R894.094 million in 2013/14. The Committee is of the view that government departments need to place emphasis on enhancing the planning for service delivery programmes and projects so as to ensure funds allocated in a given financial year are spent.

5.3 The newly established departments, i.e. Telecommunications and Postal Services; and Small Business Development, as promulgated by the President, are still in the process of being created or reconstituted. As such, these departments will be allocated budget votes as part of the 2015 budget.

5.4 The Committee notes that the 2014 budget adjustments make available R620 million for digital broadcast migration to the Department of Communications for ICT infrastructure support for the digital migration project. The Committee notes that there have been a number of delays in the digital migration project and firmly believes that the speedy implementation of the digital migration project is critical.

5.5 The Committee notes that the Department of Economic Development, Department of Tourism and Sports & Recreation South Africa have made a request for virements in excess of the eight percentprescribed by section 43 of the Public Finance Management Act, No 1 of 1999 (as amended). The Committee views significant virements as indicative of weakness in the capacity of department to plan effectively. It is imperative that all departments align their planning and spending projections.

5.6 The Committee notes that the Department of Tourism declared unspent funds amounting to R78.850 million of the 2014 budget for the Tourism Incentive programme in the Domestic Tourism programme.The Committee is concerned about the apparent lack of capacity in the Department and views the implementation of government’s job creation initiatives as critical in realising the policy objectives of the National Development Plan.

5.7 The Committee notes with concern the under expenditure in the Department of Sports and RecreationSouth Africa, especially related to the Infrastructure Support (14.1 per cent) and Sport Support (21.8 per cent) programmes.

5.8 The Committee notes that there continues to be protracteddelays in the filling of funded vacant posts and the reprioritisation of earmarked funds for posts to other expenditure items. The Committee views this asinconsistent with the State’s prime objective of building a capable state.

6. Committee Recommendations

The Standing Committee on Appropriations having engaged with the above stakeholders on the 2014 Adjustments Appropriation Bill recommends as follows:

6.1 That the Minister of Economic Developmentshould ensure that:

6.1.1 the Department align and enhance its budget planning and strategic planning function in order to ensure that projected spending is in line with planned performance.

6.1.2 the Department considers developing knowledge depositories and a central information hub (One-Stop Shop) for its programmes in assisting investments and programmes that lead to new kinds of economic activity and job creation so as to easily disseminate best practice solutions to recurring bottlenecks.

6.1.3 the Department ensures that allvacant posts are filled timeously.

6.2 That the Minister of Tourism should ensure that:

6.2.1 the Department aligns and enhance its budget planning and strategic planning function in order to ensure that projected spending is in line with planned performance.

6.2.2 the Department consider the establishment of partnerships with the Department of Small Business development on implementation of strategies to enhance the domestic tourism market and support for Small, Micro and Medium Enterprises (SMMEs) active in the tourism market.

6.2.3 the Department ensures that vacant posts are filled timeously.

6.3 That the Minister of Sports and Recreation should ensure that:

6.3.1 the Department align and enhance its budget planning and strategic planning function in order to ensure improvement on the spending performance of especially the Infrastructure Support and the Sports Support programmes.

6.3.2 the Department ensures that vacant posts are filled timeously.

6.3.3 the Department of Sports and Recreation South Africa, in partnership with the Department of Basic Education develop mechanisms for improved coordination on the delivery of sports infrastructure in schools.

7. Conclusion

The responses,by the relevant Executive Authorities,to the recommendations as set out in section 6 above must be sent to Parliament within 60 days of the adoption of this report by the National Assembly.

The Standing Committee on Appropriations, having considered the Adjustments Appropriation Bill[B10 – 2014] (National Assembly: Section 77) referred to it and classified by the Joint Tagging Mechanism; reports that it has agreed to the Bill.

Report to be considered.