ATC111019: Report on First Quarter Expenditure on the Mass Sport and Recreation Participation Programme Grant in the 2011/12 Financial Year

NCOP Appropriations

Report of the Select Committee on Appropriations on the First Quarter Expenditure on the Mass Sport and Recreation Participation Programme Grant in the 2011/12 Financial Year, dated 19 October 2011.

 

1. Introduction

The Select Committee on Appropriations (the Committee) conducted hearings on the spending levels on the Mass Sport and Recreation Participation Programme Grant in the 2011/12 financial year. This emanated from the provincial expenditure report published by National Treasury on 16 August 2011. 

 

The hearing took place on Tuesday, 23 August 2011, in Committee Room V227 at Parliament.

 

2. Terms of reference 

The hearing formed part of the Committee’s ongoing interaction with provinces to monitor their spending patterns on conditional grants. A framework for each grant sets out the purpose of the grant, measurable objectives, conditions, allocation criteria, and past performance, among other things.

 

Provinces were requested to make oral presentations on the Grant and to take into consideration the following:

• Data trends in allocations, transfers and actual expenditure of the Grant for the first quarter of the 2011/12 financial year;
• Assessment of the department’s monitoring capacity for the financial year, under-spending and what capacity constraints impacted on these outcomes;
• Whether monthly reports are received from receiving departments or municipalities, and if not, what are the departments doing to ensure compliance with monthly reporting; and
• The department’s spending plan on the Grant.

 

The Committee invited all nine provincial MEC’s responsible for Sport and Recreation, and the national Department of Sport and Recreation. In addition, National Treasury was requested to make a presentation. Only the MEC’s from the Eastern Cape, Western Cape and Free State attended the hearing. The MEC’s from the Northern Cape, Mpumalanga, Gauteng, Limpopo, and KwaZulu-Natal all sent officials to represent them. The North West Provincewas not represented at the hearing. The Committee resolved to call all absent MEC’s to appear before it at a later date.

 

3.  National Treasury (NT)

3.1 Spending trends

National Treasury reported significant spending divergences across provinces during the first quarter. The provinces of the Eastern Cape, KwaZulu-Nataland the Northern Cape were spending slowly, and had utilised less than half the funds already transferred into their bank accounts. On the other hand, the provinces of the Free State, Limpopo and Mpumalanga had utilised all transferred funds and in some cases had made additional cash contributions from their equitable share portions of the budget.

 

National Treasury presented grant expenditure as at 30 June 2011 as follows: 

Province	Total available 2011/12:	Received by province: Year to date:	Actual payments by provinces:	Payments as Percentage of total available
	R ‘000	R ‘000	R ‘000	%
Eastern Cape	63 570	13 625	5 797	9.1
Free State	33 078	8 978	12 522	37.9
Gauteng	71 148	14 600	13 989	19.7
KwaZulu-Natal	87 694	33 226	14 027	16.0
Limpopo	53 636	6 705	8 530	15.9
Mpumalanga	38 382	7 500	7 500	19.5
Northern Cape	26 372	9 273	4 486	17.0
North West	35 124	5 403	4 828	13.7
Western Cape	42 964	8 219	6 059	14.1

 

3.2 Factors affecting performance

National Treasury had identified the following issues that affect spending on this Grant:

 

3.2.1 Capacity issues

Although the Grant framework now made provision for the appointment of permanent staff, a number of provinces still reported “capacity challenges” as a reason for poor performance. Only the provinces of Limpopo, the North West and the Western Cape reported appointing any staff for the programme in the first quarter of the 2011/12 financial year.

 

3.2.2 Non-adherence to business plans

During a technical assessment of the business plans for both the 2010/11 and 2011/12 financial years, National Treasury observed an improvement in the quality of plans submitted. However, National Treasury reported that persistent non-adherence to business plans remained a challenge.  Heads of departments approved business plans, but subsequent performance reports reflected deviations from these plans by their departments. 

 

3.2.3 Poor reporting

Poor reporting by certain provinces was also cited by National Treasury as a challenge.  KwaZulu-Natal Province did not submit a performance report for the first quarter as required by the Division of Revenue Act and, with the exception of the provinces of Mpumalanga and Western Cape, no province reported on the “Number of people participating in the SRSA MPP” in the first quarter. In addition, the submission of incomplete or inaccurate reports persisted, and affected decision-making processes, including the assessment of budgets and expenditure.

 

4. Eastern Cape Province

4.1 First Quarter Spending

The Eastern Cape Province reported that they had started spending the Grant at a very slow pace due to the late signing of the business plan and the transfer of funds by Sport and Recreation South Africa (SRSA). They indicated that the processing of payments had moved speedily thereafter, to such an extent that expenditure on Goods and Services, which had been at R187 000 at the end of May 2011, increased to R5.1 million at the end of June 2011. The Province presented their projected first quarter expenditure versus the actual amount spent, as follows:

 

 

Economic Classification:	Projection	Expenditure	Variance
	R ‘000	R ‘000	R ’000
Compensation of employees	3 967	624	3 343
Goods & Services	9 374	5 157	4 217
Machinery & Equipment	78	16	62
TOTAL:	13 419	5 797	7 622

 

 

4.2 Achievements

The Eastern Cape Province reported their major achievements during the first quarter, as follows:

 

4.2.1 Legacy

• Distribution of equipment and kit: Buffalo City, Butterworth, Willowvale, Ngqutu, Ngculu, Centane and Mzwini.
• Support given to the SA Games Programme. Districts were hosting provincial trials, together with federations.
• Organised basic coaching clinics softball and netball in Mdantsane.
• Hosting of Cacadu Netball Championship Tournament in Somerset East.
• Contributed to the Public Service Week in the Karoo through equipment provision to schools and clubs.

 

4.2.2 Schools Mass Participation Programme (MPP)

• Distributed equipment to schools in Butterworth, Elliotdale, Willowvale and Mount Coke
• Organised District Mini Olympics in Aliwal North (400 participants).
• Partnerships were forged with Love Life and SASKO for sport leagues in the Joe Gqabi area. 
• The Eastern Cape team was selected for the 14th World Gymnastrada in Lausanne (93 participants).

 

4.2.3 Siyadlala

• Conducted Golden Games workshops in Grahamstown for volunteers working with the elderly.
• Cacadu attended the Indigenous Games Festival in Alfred Nzo.
• A football programme for 30 coaches was held in Ndlambe (Port Alfred) through the Stars in the Eyes Foundation.
• Organised the Metlife Mall/ DSRAC Fun Run & Road Running Race in King Williams Town.
• Organised Boxing Promotions tournaments with ECABO- EL and Mdantsane.
• Referee fitness testing was done in East London.

 

4.3 Strategic challenges

The Eastern Cape reported that they had experienced certain strategic challenges. These challenges are listed below, each followed by the corrective action, to be taken by the district management by 31 August 2011, in brackets:

 

• Lack of cooperation between officials of the Department of Sport, Arts and Culture (DSRAC) and the Department of Education (DOE) and the school sport teachers.

(The district management must arrange a meeting between all stakeholders.)

• Non-availability of storage facilities at schools for equipment.

(A meeting must be arranged between the DSRAC and the DOE to discuss this problem.)

• Monitoring and evaluation of the programme.

(Officials must be employed to monitor Grant programmes.)

• Age cheating by federations and school structures.

(A workshop must be planned with all stakeholders to address the problem.)

• Late approval of district plans.

(The district management must do proper planning during September and October)

• Shortage of personnel in districts.

(The district management must set up a meeting with the Head Office regarding the hiring of personnel.)

 

5.  Free State Province

5.1 First Quarter Spending

The Free State Province had projected to spend R8.9 million during the first quarter, but their actual expenditure was R12.5 million. They reported that the reason for this had been that the focus had shifted from sport festivals to rolling out leagues in all schools. For this reason, procurement of equipment and attire for schools had been done in the first quarter to enable schools to participate in the leagues.

 

5.2 Performance against targets

The Free State Province reported their performance against service delivery targets, as follows:

5.2.1 Legacy

• Club Development: The Province achieved its first quarter target of supporting 25 clubs.
• OR Tambo Games: The target had been to hold two Games during the first quarter, but no Games were held, as the Games will only start running in the second and third quarter at district and provincial level, respectively.
• Ensure Community Participation: The number of participants achieved was 256, against the first quarter target of 2 562 participants.  The Province indicated the reason for was that the OR Tambo Games selection will only resume in the second quarter.
• Capacity Building: The first quarter target had been to do three code-specific trainings, but none was done. According to the Province training would commence in the second quarter.
• Mass Mobilisation Projects: The quarterly target had been one project, but the Province actually supported two projects during the first quarter, as the Youth Camp which had been planned for the third quarter, was launched in the first quarter.
• Sport and Recreation Councils: The Province achieved its target of supporting 25 sport and recreation councils.
• The Province had projected to appoint 11 volunteers during the first quarter, but due to a change in the strategy in terms of utilising the sport and recreation councils, no appointments will be made during the 2011/12 financial year.

 

5.2.2 Schools Sport Mass Participation Programme (SSMPP)

• Support School Sport Code Committees: Out of the first quarter target of establishing 15 school sport code committees, the Province achieved 14.
• Support Sport Code-Specific Leagues: Out of the target of six schools sport code leagues for the first quarter, the Province managed to establish five.
• Provide schools with equipment and attire: The target for the number of schools to receive sport equipment and attire had been 323. The Department had reached 218 schools. This had been due to an increased turnaround time from the supplier. The rest of the equipment and attire would be delivered when schools re-opened in July.
• People capacitated: The first quarter target for the number of participants in the programme had been 15 950. The number achieved by the Department was 116 950. The Province reported that the target had been based on schools in the SSMP programme only. The new mandate was to ensure that all schools take part. This was delivered in partnership with the national Department of Education (DoE).
• Monitoring and Evaluation: The first quarter target had been to conduct three district monitoring and evaluation visits and the Department had achieved two, having postponed the Thabo Mofutsanyana visit to the second quarter. In terms of monthly reporting, the Department had achieved its first quarter target of three monthly reports.
• Number of people capacitated in coaching, technical officiating and sport administration: The first quarter target had been 150, but the actual performance had been 550. The reason given for this was that training was now conducted in partnership with the DoE to avoid duplication and maximise resources.

 

5.2.3 Siyadlala

• Sport and Recreation Councils: The first quarter target had been to turn one town into a community based organisation. This target was not achieved, as the Province was awaiting guidance from SRSA who was leading the project.
• Indigenous Games: The Province had projected to stage five indigenous games, but none took place. According to the Department, the selections would commence in the second quarter.
• Ensure community participation: The Department achieved only 1 962 of the first quarter target of 19 350 in terms of the number of participants. According to the Department, this was as a result of a change in strategy (not appointing volunteers). Targets were now allocated to sport officials and sport councils within local municipalities.
• Establish local service points (hubs) festivals: Here the Province achieved its first quarter target of 82.
• Senior Citizens Programme (Golden Games): The first quarter target had been to stage four senior citizen programmes, but none had been staged. According to the Department, selection would commence in the second quarter.
• People with Disabilities Games: The Province achieved its first quarter target of staging one event.
• Capacity Building: The first quarter target had been to train 246 people in life skills. However, no-one was trained. The Department indicated that this target had been aimed at appointed volunteers, whereas the focus would now be on sport councils.
• Improved sector capacity: The first quarter target had been to appoint 246 volunteers to work in the programme. However, no appointments would be made during the 2011/12 financial year, due to the new strategy of utilising sport councils.

 

5.3 Challenges and remedial steps

The Free State Province reported that they had experienced a challenge with the verification of leagues in the schools. A meeting was held with SYRAC on 11 July 2011 to resolve the problems and as a result, measures would be put in place to ensure verification.

 

They further reported that they had experienced challenges in reaching set targets. They had responded to this by capacitating sport and recreation councils through providing continuous support.

 

6. Western Cape Province

6.1 First Quarter Spending

Of the R8.2 million transferred to the Western Cape Province for the first quarter, they had spent R6.0 million, which represented 14 per cent of their total allocation for the 2011/12 financial year. The Province indicated that the under-expenditure during the first quarter had been as a result of the following:

• A number of personnel, sport assistants and activity coordinators had been appointed only in the second quarter, but had been budgeted for in the first quarter.
• The identification and verification process of clubs had taken place during the first quarter.
• Capacity building (skills development) was taking place in the second quarter.

 

6.2 Achievements

The Western Cape reported the following achievements:

• 552 participants from the Province participated in the South African Games.
• Mass Opportunity and Development (MOD) Centres have been established and serve 168 schools.
• Sport Higher Performance (Sharp) Centres have been established where the most promising learners from the 168 schools are taken up in talent camps.

 

7.       Sport and Recreation South Africa (SRSA)

SRSA reported that seven provinces had submitted their business plans on time and the other two had submitted subsequent to the deadline. However, SRSA had concerns about the quality of some of the expenditure and indicated that some provinces needed serious intervention from national level. Of particular concern to them were the following provinces:

 

·   The Eastern Cape Province had under-spent by R10 million in 2010/11.

·   The North West Province was battling with a number of compliance issues like annual, quarterly and monthly reporting.

·   Mpumalanga Province was improving, but because of the lack of detailed reports from the province, the quality of the spending could not be assessed.

 

A general concern was that provinces were not taking advantage of the 6 per cent allocation within the framework for the appointment of permanent staff.

 

8. Conclusions

After interacting with the provincial Departments responsible for Sport and Recreation, the national Department of Sport and Recreation and National Treasury, the Committee concluded the following:

 

8.1 The Committee noted with concern the non-adherence to business plans by provinces.

8.2 Provincial departments are experiencing capacity constraints with the managing of this Grant, but are not taking advantage of the provision within the framework for the appointment of staff.

8.3 The non-attendance of MECs at the meeting was of concern to the Committee and the Committee chose not to interact with the officials in the absence of their political heads.

 

9. Recommendations

Having considered the submissions by provincial Departments of Sport and Recreation, the national Department of Sport and Recreation, and National Treasury on the spending patterns on the Mass Sport and Recreation Participation Programme Grant in the first quarter of the 2011/12 financial year, the Select Committee on Appropriations recommends that the National Council of Provinces considers the following:

 

9.1 Provincial departments should adhere to their approved business plans. Should priorities change, business plans should be amended;

9.2 Provincial departments should make use of the six per cent allocation within the grant framework for the appointment of permanent staff; and

9.3 MECs should attend meetings when they are invited by the Committee or make prior arrangements with the Chairperson for a suitable representative.

 

 

Report to be considered.