ATC140711: Report of the Portfolio Committee on Sport and Recreation on the Budget Vote, Strategic Plan and Annual Performance Plan of the Department of Sport and Recreation, as well as the Strategic Plan of the South African Institute for Drug-Free Sport and Annual Performance Plan of Boxing South Africa, dated 8 July 2014

Report of the Portfolio Committee on Sport and Recreation on the Budget Vote, Strategic Plan and Annual Performance Plan of the Department of Sport and Recreation, as well as the Strategic Plan of the South African Institute for Drug-Free Sport and Annual Performance Plan of Boxing South Africa, dated 8 July 2014

The Portfolio Committee on Sport and Recreation, having considered Budget Vote 20: Sport and Recreation South Africa, the Strategic Plan of the Department of Sport and Recreation South Africa for 20 14‑19, the Annual Performance Plan of the Department of Sport and Recreation South Africa for 20 14‑15, the Strategic Plan of the South African Institute for Drug-Free Sport for 2013‑18 and the Annual Performance Plan of Boxing South Africa for 2014‑15, reports as follows:

1. Introduction

The 2014/15 financial year is an election year which has led to the establishment of the 5 ^th Parliament. At the same time the introduction of the five-year Medium-Term Strategic Framework (MTSF) that the newly established government has proposed, sets out new priorities. The National Development Plan (NDP) still remains the macroeconomic policy of the new government and finds its expression in the Medium-Term Strategic Framework. This in itself has required that the Department of Sport and Recreation adapt its plans to the priorities of the MTSF and that of the NDP, and develop programmes that will allow it to achieve the goals of the MTSF.

1.1 The Role and Mandate of the Portfolio Committee is to:

· Consider legislation referred to it

· Exercise oversight over the Department of Sport and Recreation and its statutory bodies, namely Boxing South Africa and South African Institute for Drug-free Sport

· Consider International Agreements referred to it

· Consider the Budget Vote of the Department of Sport and Recreation

· Facilitate public participation in its processes

· Consider all matters referred to it in terms of legislation, the Rules of Parliament and resolutions of the House

In terms of the Constitution of the Republic of South Africa, 1996, Portfolio Committees have a mandate to legislate, conduct oversight over the Executive and facilitate public participation.

Furthermore, Section 5 of the Money Bills Amendment Procedure and Related Matters Act, Act 9 of 2009, (the Act) provides that the National Assembly, through its committees, must annually assess the performance of each national department and submit Recommendations reports for tabling in the National Assembly.

1.2 The role and mandate of the Department

The Department of Sport and Recreation is the primary government institution responsible for formulating and implementing policy on sport and recreation. It reports to and advises the Minister who, in conjunction with Cabinet, takes final responsibility for Government policy. The Department is headed by the Director-General, who is responsible for ensuring that sport contributes towards maximising access to sport and recreation and encouraging world-class performance which strengthens social cohesion and nation-building.

1.3 Limitation of the report

Whilst the Committee has considered inputs from other stakeholders like SALGA, SAIDS, SASCOC and a written input from Boxing South Africa, it has not been able to involve a wide range of stakeholders to submit inputs due to time pressures that came as a result of the newly established parliament.

The presentation by SRSA has given a verbal clarification on some of the matters expressed; the 2014/15 APP document is a living document that captures the plans of the intention of the department. Other sources consulted include the 2012/13 Annual report. Whilst the department has given an undertaking of filling all the vacant posts, until such time that this has been completed, the committee will always reflect on it.

In its operations, the department relies on other stakeholders to implement programmes and also uphold the agreements. There changing environment in which programmes are implemented, may cause changes in the programme of implementation. Whilst the

2. OVERVIEW OF THE ANNUAL PERFORMANCE PLAN

2.1. Sport and Recreation South Africa

The 2014-15 Annual Performance Plan (APP) is the operational tool that expresses the ideals of the 5-year Strategic Plan of the department. This document aims to reinforce and integrate the NSRP to ensure that it attains the objectives and goals as indicated in the 2014-19 Strategic Plan. In the main the APP provides the rationale expression of the five critical pillars of the NSRP, which are: An active nation, a winning nation, an enabling environment, transversal issues and sport as a tool. The 2014-15 APP was tabled with no updates incorporated on the situational analysis of the performance delivery and organisational environments. It is worth noting that there are no changes to the SRSA legislative mandates as it is reflected in their 2014-2019 Strategic Plan.

There were changes to the names of the programmes of the department in the current financial year. These changes were effected as a result of the adoption NSRP and implementation of the Medium Term Expenditure Framework in 2014, which sought to integrate the strategic decisions. As a result, National Treasury has approved this budget structure as it is aligned to the legislative and the NSRP-approved mandates. These changes have necessitated a strategic realignment of programmes by the department.

The total allocation of budget for the 2014-15 financial year amounted to R970.4 million, down from R1 073.5 million in the 2013-14 financial year. This difference is a result of the additional R160.9 million for hosting the African Nations Championship in the 2013/14 financial year. This budget does not yet reflect the total approved costs of the NSRP which has been estimated to be R10 billion, if it were to be fully implemented.

The major part of the departmental budget allocation was meant for the Active Nation Programme. This programme attends to the provincial transfers of the Division of Revenue Act (DORA) grant. In conducting its oversight function, the committee will engage with the provinces to ensure that the funds are spent wisely for the purpose of developing sport.

2.2. Boxing South Africa

The 2014/15 APP of Boxing SA was referred without any review of its 2012-2017 strategic plan. This means that the priorities of the entity have not been updated to reflect the emerging challenges and incorporate new mandate. Boxing SA has had some serious challenges over the last couple of years ranging from, maladministration, poor governance, instability of the board due to resignations etc. However during the 2013/14 financial year, some decisive actions had been taken to address the situation and address some of the areas that will improve the functioning of the entity. These actions ranged from the appointment of senior manager to fill some key positions, the intervention by SRSA to assist with the audit functions. During the 2013/14 MTEF period, Boxing SA received an unqualified audit opinion, showing an improvement from the previous years.

Some of the changes that have been effected in the APP for 2014/15 financial year, to respond to the dynamic and complex environment, include the review and development of policies, the review of the funding model of BSA, alignment of the organizational structure to the Boxing act etc.

2.3. South African Institute for Drug-Free Sport

The Minister tabled the entity’s 2013-18 strategic plan which outlines its purpose and future intentions over a period of five years. Whilst SAIDS has not tabled its 2014-15 Annual Performance Plan, its 2013-18 strategic plan does not capture the 2014-15 operational plans but makes reference to the 2013-14 financial year targets only. The department had indicated during the tabling of the 2014/15 MTEF period, an additional allocation of R13.1 million for SAIDS during the 2014-15 MTEF period.

3. STRATEGIC PRIORITIES AND MEASURABLE OBJECTIVES OF THE DEPARTMENT OF SPORT AND RECREATION

3.1. Policy Priorities of the Department

• Millennium Development Goals (MDGs): The Department is playing a leading role in the development and implementation of United Nations (UN) policies related to sport for development and peace.
• United Nations Educational, Scientific and Cultural Organisation (UNESCO): Governments have accordingly drafted, pursuant to the WADA Code, an International Convention under the auspices of UNESCO to allow formal recognition of WADA and the Code. International Anti-Doping Arrangement (IADA) has evolved into a unique and effective organisation, committed to combating the practice of doping in sport. The IADA has developed into an effective partnership between governments and their respective national anti-doping organisations (NADOs).
• White Paper on Sport and Recreation for the Republic of South Africa: The White Paper p rovides the national policy direction (the “what”), and formed the basis for the development of the Government’s first ever NSRP, (the “how”) nurturing a vibrant sports system that encourages the growth and development of the sports sector and the equitable delivery of sport to all to ensure that South Africa is both an active and a winning nation.
• National Sport and Recreation Plan: The strategic focus of NSRP is to reconstruct and revitalise the sport and recreation sector for an active and winning nation whilst improving the quality of life of all South Africans.

3.2. Strategic Priorities of the Department

• Accelerating universal access to affordable sport facilities
• Reducing sport and recreation infrastructure backlogs significantly
• Supporting provinces and local government to achieve clean audits
• Supporting federations to unearth talent
• Transforming sport to be professionally administered and reflects the entire demographics of the country as per the report of the Eminent Persons Group, which was appointed by the Minister of Sport to look at transformation.
• Accelerating sport development and nurturing talent.

3.3. Strategic Goals of the Department.

· Goal 1: Citizens access sport and recreation activities

· Goal 2: Sport and recreation sector adequately transformed

· Goal 3: Athletes achieve international success

· Goal 4: Enabling mechanisms to support sport and recreation

· Goal 5: Sport used as a tool to support relevant government and global priorities

· Goal 6: An efficient and effective organisation

3.4. Overview of strategic goals

The strategic goals as captured in this report reflect the goals that the department wants to achieve through the National Sport and Recreation Plan. For the purpose of the 2014/15 APP and Budget Vote 20, the committee has analysed the departmental budget for 2014/15 based on how it intends to achieve the goals and what it has been doing to improve its performance. This analysis has considered the limitations that were mentioned in par 1.3 above.

Strategic Goal 1: Increase citizens’ access to sport and recreation activities annually by 5% by 2019

The department was not able to achieve its goal on increasing the number of sport promotion projects; numbers declined from 28 008 participants in 2011-12 when there was 42000 targeted for the year to 8 653 participants in 2012-13. There was a decline of 70% (19355) of participants who were given access to participate in Sport and Recreation. The 2014-15 Annual Performance Plan indicates a target of 9150 participants in the promotional campaigns. This means that the department is anticipating an increase of about 500 participants. With the addition of programmes like Cycle for Life, the additional sporting codes in the Golden Games, additional recruitment of Groundbreakers for Lovelife, notwithstanding an increase in budget allocation from R592.3m in 2013-14 to R615.2m in 2014-15, the number of participants should increase far beyond the set standards.

The 2012-13 Annual Report of SRSA indicates that 1 277 653 citizens gained access to sport and recreation opportunities through the conditional grant to provinces. According to their 2010-11 annual report the number of participants was 5.08 million, which was partly due to the 2010 FIFA World Cup mobilisation. There is a concern about the decline of participants in sport and recreation as this implies ineffective execution of the transformation mandate of increasing access and opportunities for all South Africans in Sport and Recreation.

It is expected that the changes and realignment of departmental programmes will provide a bigger pool of sport and recreation participants.

Strategic Goal 2: oversee the transformation of the sport and recreation sector where 80% of the recognised National Federations should meet the transformation targets by 2016

As per the latest available list of affiliates from SASCOC there are about 76 affiliated federations. During the 2012/13 financial year the department managed to assist 68 (89%) sporting federations which is an increase from 54 (71%) that were assisted in 2011/12. During the 2014/15 financial year the department intends to assist 60 national federations. The indicator for this goal stipulates that the measure of performance is a percentage of these recognised federations that would have met the transformation targets; the goal is to see 80% of the federations achieving this by 2019.

The 2014 report of the Eminent Persons Group on transformation in sport, has highlighted that transformation is not only limited to the quota system but should be applied to all dimensions, progress to peak performance, changing demographic profiles, institutional governance, skills and capability development, employment equity and preferential procurement. The transformation scorecard for all federations is based on measuring these dimensions and SASCOC will assist to monitor and evaluate the federations’ performance in this regard.

Strategic Goal 3: ensure that more athletes achieve international success by 10% in 2019

The introduction of the Ministerial Sport Bursary programme in the 2014/15 financial year aims at ensuring that an athlete’s career is given a multidimensional support and resources are channelled strategically to provide the necessary scientific support through institutions that have the infrastructure. The old programme of residential support was ceased in December 2013. During the 2013/14 financial year 90 athletes from the old programme were supported and in the 2014/15 financial year support for only 40 athletes was continued. The new ministerial sport bursary programme aims at providing 40 athletes with support during the 2014/15 financial year. The budget for the 2014/15 financial year has been reduced to R91.3 million, from the R228.8 million that was allocated in the 2013/14 financial year. The reduction comes as a result of there not being any major event that would require additional funds.

Strategic Goal 4: develop enabling mechanisms to support the delivery of sport and recreation established and sustainable by 2019

The intended outputs for 2014/15 financial year, as established in the 2014-19 strategic plan are to establish the norms and standards for facilities and to complete the national facility audit. SRSA has set a target of completing an audit of facilities in all the 9 provinces during the 2014/15 financial year. Monitoring of the 15% MIG funds intended for the building of sports and recreation facilities in rural areas will be. However, since the implementation of this agreement has been gazetted in May 2011, little progress has been seen in this regard. The department intends to engage SALGA around the possibility of transferring the ring-fenced grant from MIG to the budget of SRSA. A thorough plan is needed to ensure that SRSA can properly monitor and has the capacity to administer the MIG conditional grant. The plan is important in order to ensure that SRSA continues providing support to the municipalities with planning and implementation of the municipal sport and recreation facilities and consequently monitoring of the municipalities’ performance and compliance with conditions applicable to the sector.

The NSRP clearly states that 3% of the Mass Participation and development conditional grant should be allocated to help the provinces with the establishment of Provincial Sport Councils. Whilst this output has been left to SASCOC to monitor it, allocations to provinces, should have a measure of how funds have been allocated to sport councils. An effort should be made to avoid delays in transferring funds to provinces.

Strategic Goal 5: Sport and Recreation used as a strategic tool to contribute directly to all five government priorities and two United Nations priorities by 2019.

The department has repackaged and expanded the Sport for Social Change programme, which should catalyse change in the environment, HIV and AIDS, Sport against crime. These are goals that contribute to the Government priorities Goal 12(b) and the, which seeks build “an empowered, fair, and inclusive citizenship” and promote social cohesion through. The programmes that are meant to assist in this regard are strategically linked to the other programmes of the department and any changes track or progress that takes place over time.

The 2014/15 APP indicates that the department will continue to lead the country in playing a role in matters of global importance within UNESCO and UN Sport for Peace and Development International Working Group (SDP IWG), IADA and WADA. South Africa holds the Chairmanship of the Board of SDP IWG. It also holds the Secretariat of the African Union Sport Council Sport Development Region Five. There are more strategic partnerships with IBSA and BRICS, which will be strengthened through participation in joint projects aimed for the preparation of 2014 and 2018 FIFA World Cups. For the 2014/15 financial year, the department has promised to cut down on international travel by reducing the number of delegates.

Strategic Goal 6: Implement internal processes and procedures to ensure that SRSA annually receives an unqualified audit report.

SRSA has received an unqualified audit report during the 2013/14 MTEF period and has set a plan to attend to the recommendations contained in the AG management letter to address some of the key issues that have been raised. The 2013/14 AG report had indicated that the department is not consistent in complying with their predetermined objectives, where the information received could not be measured and was not useful. In addition to this the information received could not be found to be reliable since the performance information on Sport Support Services and Mass Participation was incorrect, due to management’s inability to develop standard operating procedures for accurate recording of actual achievements. This indicator had also received a qualified report from the AG in the 2012/13 MTEF period, showing that the department had not done anything to improve the situation.

SRSA has to ensure that it avoids the delays of meeting the 30 day target of paying the service providers, which is in contravention of the section 38(1)(f) of the PFMA. The grant framework with the provinces aimed at ensuring that there are proper regulations with regard to the funds transferred should be complied with, in order to assist the accounting officer to maintain the appropriate measures as required by treasury.

4. KEY PROJECTS

SRSA has identified the following key projects for the 2014/15 financial year:

• School Sport Programme
• South African Schools National Championships
• National Indigenous Games
• Youth Camps U/20
• 20 Years in Sport
• UNITE Campaign
• Sports Awards
• Commonwealth Games in Glasgow 2014
• South African Sport and Recreation Conference (SASRECon)
• National Basketball League

5. BUDGET ANALYSIS

National Treasury has indicated that the country’s current fiscal position does not allow any room by making additional funding available, however there still has to be progress towards creating an inclusive economic growth and job creation amid the tough fiscal environment. This will require new priorities and an expansion of existing programmes through reprioritisation within the existing budget. As a result of this, there are difficult choices that have to be made in choosing between spending priorities and in deciding on the sequence of programme implementation. Due to the budgetary constraints, departments are required to efficiently manage the costs pressures related to changes in the inflation rate, exchange rate or any other factors affecting input prices.

During the 2012/13 financial year expenditure spending focus over the MTEF period was expected to continue promoting mass participation, mainly through the mass sport and recreation participation grant, and on the development of sport at various levels by supporting school sport, club development and sport federations, including hubs. Whilst the overall expenditure has been on the decline between 2010/11 and 2013/14, following the completion of the 2010 FIFA World Cup projects, it is expected to decrease further from R1.1 billion to R970.4 million in 2013/14 and 2014/15 respectively due to the once-off allocation of R158.5 million in 2013/14 for the African Nations Championship. Whilst the National Sport and Recreation Plan is being implemented, the budget allocation has not considered the cost implications for its implementation.

The 2014/15 budget projects an increase in the expenditure of compensation of employees, from R85.9 million to R103 million in 2013/14 and 2014/15 consecutively. This is an indication that SRSA plans to fill the vacancies, mainly between levels 7 and 10. There were 42 vacant posts in November 2013. One other expense that will increase is the spending on lease agreement, where the department intends to move to new premises to accommodate the bigger staff complement. The Auditor General had observed in the previous financial years that the department’s performance was affected by the high number of vacancies. The increase funding allocated for compensation of employees, will require the department to take serious steps in fulfilling this task.

Additional funding of R3.6 million has been secured for SAIDS in the 2014/15 MTEF period, R4.2 million for 2015/16 and R5.5 million in 2016/17. This is to ensure that SAIDS is able to comply with the World Anti-Doping Code (WADA Code). Nothing has been added extra for Boxing SA, despite the request for additional funding.

6. NEW PROGRAMMES OF THE DEPARTMENT

Programme	Audited Average Expenditure		Adjusted Appropriation	Expenditure Total Average (%)	Medium Term Expenditure Estimate
R million	2010/11 to 2012/13		2013/14	2010/11 to 2013/14	2014/15
Administration	90.8	100.3	124.9	9.5%	131.3
Active Nation	500.8	539.5	592.3	51.8%	615.2
Winning Nation	45.5	292.5	228.8	16.1%	91.3
Sport Support	48.2	117.5	118.2	8.7%	122.2
Infrastructure Support	7.2	4.3	9.3	0.5%	10.4
2010 FIFA World Cup Unit	559.6	_	_	_	_
Total	1,252.0	1,054.1	1,073.5	91%	970.4

Table 1: SRSA 2014-15 budget per programme

National Treasury (2014)

Whilst the departmental average total expenditure is at 91%, there is a great concern on under-expenditure, which cannot be acceptable. Under spending has been as a result of funds that are with-held from provinces due to non-compliance with the report. SRSA has indicated that their biggest problem is over-expenditure and not under expenditure. PFMA is clear on acceptable levels of under spending which should be in the range of 5 per cent.

6.1 Administration

The purpose of this programme is to manage the Department and provide overall strategic and administrative support services. In this programme the spending focus over the medium term will be on increasing participation in school sport and developing sport clubs as well as sporting hubs within communities. The main areas of expenditure will therefore be the Active Nation program, which consist mainly of transfers of the mass participation and development grant to provinces, and the sport support programme from which transfers to sport federations are made. This expenditure accounts for the dominance of transfers and subsidies in the departmental expenditure.

The need to provide the necessary oversight in relation to actual use of these transfers funds accounts for the growth in expenditure on travel and subsistence over the MTEF period. Overall expenditure decreased between 2010/11 and 2013/14, following the completion of the 2010 FIFA World Cup projects, and was expected to decrease further between 2013/14 and 2014/15, from R 1.1 billion to R 970.4 million, due to the once-off allocation of R 158.8 million in 2013/14 Africa Nations Championship. There were 42 vacant posts in November 2013, mainly between levels 7 and 10 and the Department should fill these over the medium term. This explains the projected increase in expenditure on the compensation of employees over the MTEF period. Spending on operating leases is also projected to grow, due to the Department’s planned move to new premises in 2013/14 to accommodate the bigger staff complement.

In future the spending focus over medium term will be on providing corporate and other support services to the Department, which accounts for the dominance of corporate services subprogram, and providing for the Department’s accommodation needs. Thus, the most significant items of expenditure in the programme are compensation of employees, travel and subsistence. The lease for office accommodation constitutes 7 per cent of the budget between 2010/11 and 2013/14 and is expected to increase over the medium term after the Department’s expected move to new premises at the end of 2013/14. Spending on consultants is equivalent to 1.7 per cent of expenditure on compensation of employees in 2012/13. Consultants mainly provide legal and audio visual services and conduct external auditing investigations.

6.2 Active Nation

The purpose of this; is to support the provision of mass participation opportunities in sport and recreation. One of the objectives of this programme is to improve the well being of the nation by stimulating lifelong participation in active recreation, through facilitating the delivery of at least 3 programs. The spending focus over medium term on this programme will be on promoting mass participation in sport and recreation through the mass participation and sport development conditional grant, which supports school sport, club development, sporting hubs, sport academies and sport councils and accounts for dominance of expenditure on transfers to provinces in the program. An average of 85 per cent of the program’s total allocation over the medium term will be spent on the grant in the provincial sport support and coordination subprograms. The management and oversight exercised by the Department in respect of the grant partially accounts for the increased expenditure on travel and subsistence, which falls under the community sport and school sport subprograms.

School sport remains a priority for the Department as it is the bedrock for sport development in the country, as reflected in the growth in expenditure in the school sport subprogramme over the MTEF period. The main activity in this subprogramme is the South African national school sport championship. Staged annually, the event explains the relative significance of expenditure on travel and subsistence and venues and facilities within expenditure on goods and services. The decreases in expenditure in this subprogramme in 2013/14 were due to the once–off shifting of funds to the community sport subprogramme for the Nelson Mandela Sport and Culture Day. The programme had a funded establishment of 23, with 1 vacancy, at the end of November 2013. This vacancy is expected to be filled in 2014/15. In addition contract positions set to be created in 2014/15 to assist provinces in implementing their respective school sport programs account for the growth in expenditure on compensation of employees over the medium term.

6.3 Winning Nation

The purpose of this; is to support the development of elite athletes. One of the crucial objectives of this programme is to contribute to the nation building by financially supporting; monitoring and evaluating the services delivered by the South African Sports Confederation and Olympic Committee (SASCOC) in preparing and delivering South African teams for participation and selected international multi-sport code events on an ongoing basis. The newly established sub-programme of Winning nation, the other newly introduced sub-programme is the Ministerial Sport Bursary Programme, which replaces the Scientific Support. This programme has ceased to support 31 athletes in December 2013 and will continue to support 40 in 2014/15 until its complete phase out by the end of the financial year. Scientific support will help coordinate talent scouting using school sport competitions as a tool.

The spending focus over the medium term will be on providing scientific support to athletes as reflected by the additional allocation of R 13.3 million for the transfer to the South African Institute for Drug-Free Sport. The additional funds are to assist the institute in ensuring that South Africa complies with the World Anti-Doping Agency (WADA) code.

Expenditure on contracts in the scientific support subprogramme grew significantly from 2010/11 to 2013/14, due to the Department intensifying support for the elite athletes through high performance centres in preparation for major events over this period, including the 2012 Olympic Games. The fluctuations in the transfers to non-profit institutions are due to once-off allocations of R 84 million in 2012/13 African Cup of Nations, and R 36 million in 2013/14 for the 2014 African Nations Championship (CHAN). As a result, spending in the major events subprogramme fluctuates between 2010/11 and 2013/14.

The recognition systems subprogramme was introduced in 2011/12. Expenditure has fluctuated (R17.1m in 2012/13, to R21.9 in 2013/14 and down to R18.8m in 2014/15 MTEF period) in this subprogramme from inception, mainly due to financial incentives paid to athletes for their achievement at international events in 2011/12 and 2013/14. These payments were made through transfers to the South African Sports Confederation and Olympic Committee and are reflected under transfers to non-profit institutions. As part of the Cabinet-approved budget reductions, the recognition systems subprogramme expenditure will be reduced by R 3.4 million over the medium term. The impact of this reduction on service delivery will be minimised as private sector donors are brought in to augment funding for the recognition of performances.

The number of personnel in this programme is expected to increase from 17 in 2013/14 to 23 in 2016/17. This accounts for the increase in expenditure on compensation of employees over the medium term as vacant posts are filled to provide the capacity required to support the implementation of the newly endorsed national sport and recreation plan. The Department delayed filling these posts to ensure that the new organisational structure would be aligned with this plan.

6.4 Sport Support

The purpose of this; is to develop and maintain an integrated support system to enhance the delivery of sport and recreation. The objective of this programme is to contribute towards uniting the country by supporting 60 national sports federations and other non-governmental organisations that offer sport and recreation opportunities to all South Africans in 2014/15. The spending focus over medium term will be on supporting recognised sport federations through transfers to non-profit institutions in the sport and recreation service providers’ subprogram. These transfers constitute 83.6 per cent of the program’s allocation over the medium term and will ensure that 60 sport federations are supported in each year of the MTEF period.

The Sport and Recreation Service Providers sub-programme is part of the existing structure, however in line with the NSRP, there will be an expansion of its functions to include, Transformation, Sport Administration, Sport House, Financial resources, Sport and Environment, Domestic competitions, international competition, Ethical environment, Geopolitical Sport boundaries, Sport Councils, Athlete Coach and Technical Officiating support, including transfers to National federations, Sport Trust and BSA. Its budget will grow from R111.7 million to R117.9 million in 2013/14 and 2014/15 MTEF periods. The increased mandate will put pressure on the resources of the department and thus require a thorough plan of activities to be undertaken within the limited resources.

The international liaison subprogramme is projected to have a negative average annual growth over the medium term due to the implementation of efficiency measures in international travel, which include smaller delegations being sent to international events.

The number of personnel in this programme is expected to increase from 6 posts in 2013 to 9 funded posts in 2016/17. This accounts for the growth in expenditure on compensation of employees over the MTEF period as the Department fills vacant posts that will provide the capacity required to support the implementation of the newly endorsed national sport and recreation plan. The Department delayed filling these posts to ensure that the new organizational structures would be aligned with this plan.

6.5 Infrastructure Support

The purpose of this is to regulate and manage the provision of sport and recreation facilities. The objective of this programme is to improve levels of participation in sport and recreation by facilitating the provision of adequate and well maintained facilities. The spending focus over the medium term will be on providing 18 outdoor gyms to rural areas that have no sport facilities; completing the national facilities audit; and compiling a national facilities plan. This planned expenditure is reflected in the sport and recreation facility management subprogram, which constitute 49.5 per cent of total programme expenditure over the medium term. The provision of outdoor gyms to rural areas also explains the expenditure on contractors across the seven-year period.

The newly created sub-programme of infrastructure support is intended to manage the delegated administrative and financial responsibilities, and coordinates all monitoring and evaluation functions. There was only 1 staff member in 2013/14 in this sub-programme and it has been a budget of R2 million during the 2014/15 MTEF period. Whilst the other two sub-programmes have just been expanded to meet objectives of the NSRP, the name change from Technical Support to Sport and Recreation facility management sub-programme, has expanded this function to include the MIG management function.

Expenditure in this subprogramme is expected to increase over the medium term, following the lower than expected spending in 2013/14, which was the result of unexpected delays in the delivery of the outdoor facilities and delays in conducting the facilities audit. The number of personnel in this programme is expected to increase from 5 posts in 2013/14 to 9 posts in 2016/17. This accounts for the growth in compensation of employees over the MTEF as the Department fills the vacant posts that will provide the capacity required to support the implementation of the newly endorsed national sport and recreation plan. The Department delayed filling these posts to ensure that the new organizational structure would be aligned with this plan.

7. ENTITIES BUDGET ANALYSIS

Table 2: Budget of entities of department.

Programme	Audited Average Expenditure		Adjusted Appropriation	Medium Term Expenditure Estimate
R million	2010/11 to 2012/13		2013/14	2014/15
Boxing SA	16 486	9 055	9 181	10 190
SAIDS

Boxing SA: 2014/15 Annual Performance Plan

7.1. Boxing SA

The budget allocated for the 2014/15 MTEF period is R10.1 million, which will see R6.4 million (60% of total allocation) being allocated for the compensation of employees. The development programme and administration of Boxing SA will always be hampered by the limitation of the resources. Boxing SA spending over the medium term is to ensure that key divisions like finance and fund raising divisions are adequately capacitated. The focus on 2013/14 was on settling the outstanding debt and filling of key positions. Spending on consultants will reduce as a result of employing the Chief Financial Officer.

7.2. SAIDS

Only the 2013-2018 strategic plan was tabled for SAIDS and no APP has been referred to the committee. However during the 2013/14 budget review it had been noted that SAIDS’s allocated budget would rise from R14 million in 2013/14 to R14.8 million in 2014/15 MTEF periods. This is a slight increase from the R13.2 million which was allocated in 2012/13 MTEF period.

8. STAKEHOLDERS’ INPUTS

8.1. SASCOC

SASCOC has focused on sorting out structures and coordination of resources and identification of talented athletes and preparing them for multicode events together with federations. It has started with the support programme for athletes 3 years prior to next Olympics and Paralympics, so far they have presented key milestones,e.g. coaching framework and have SA coaching framework. SASCOC has indicated that they have started implementing the NSRP, though without enough funding. The immediate task is to deliver Team SA to the Glasgow 2014 Commonwealth Games, where the goal is to retain the top 5 position. And the other major competition to follow will be the Youth Olympic Games in Nanjing, China in August 2014. Only four national federations with 80 athletes will take part in these games. During the 2 ^nd Africa Games in Botswana, South Africa managed to win 93 medals and came on 2 ^nd place out of 51 countries.

8.2. SALGA

SALGA is an important stakeholder in the delivery of sport and recreation facilities. Its mandate is to serve as the official representative of its members in local government has a vested interest in ensuring social cohesion and human development in all municipalities as it affects all its members directly or indirectly. It specifically plays a central role in the implementation of the National Sports and Recreation Plan especially when it comes to the implementation of programmes such as the Mass Participation Programmes. One of the major thrust of local government, is to ensure that through the allocated MIG funds, municipalities are able to use the 15% that is ring-fenced, to build sports and recreation facilities. This is indicated on Schedule 5B of the Constitution of the Republic of South Africa. This has been a challenge for many years, where funds have had to be shifted to fund other priorities of local government other than sports.

Recently SALGA has developed a Local Government Sport and Recreation Framework aimed at amongst other things, supporting local municipalities with regard to the effective use of MIG portion ring fenced for sports infrastructure. The grant is there to ensure that municipalities have an opportunity to build and construct sports facilities including the maintenance and upgrading of facilities. Thus expanding opportunities for participation in sports will help to ensure teams represent all sectors of society.

SRSA and SALGA have been working together, starting with the consultative process to develop the NSRP, the Sport Indabas, the 2012 Sport Conference were the decision to consolidate the MIG was taken. There however needs to be more interaction and consultation to coordinate the planning of facilities in local government. SRSA is funding provinces through the DORA and the MIG is a direct allocation to municipalities by Treasury for a specific purpose.

8.3. SAIDS

South African Drug-Free Sport institute plays an important role of maintaining an ethical behaviour and promoting sportsmanship by ensuring that athletes do not use unwanted substances to gain an unfair advantage. As a result they have to conduct drug tests to suspected athletes. These they do through two of their main programmes, doping control and the education and awareness programmes. Through their doping control programme, during the 2013/14 MTEF period, they managed to conduct 2973 drug tests in sport of these, 404 were blood tests, they also found that about 44 tested positive for doping. During the same year there were 5 Appeals lodged against sanctions.

During the same year the in order to increase awareness and educate athletes about doping, the entity managed to conduct about 49 local, education seminars/workshops to sports federations/schools, there were complemented by 24 anti-doping outreach programme at provincial/national sports events. The institute also participated in the regional Southern African regional anti-doping seminar in Namibia. They also hosted the 2013 Sports Law Seminar which was an International seminar. They also to offered Operational support to Sport and Recreation SA in the hosting of the WADA’s 2013 World Conference on Doping in Sport. Due to the increase nature of the business of the entity, as a result of litigations that they face, new testing equipment that is needed, SAIDS motivated for an increase on their baseline government grant over the MTEF period. SRSA supported the motivation and the National Treasury approved an increase over the baseline SAIDS grant of R13.3 million which will be spread over the medium term (2014 -2017)

8.4. Boxing SA

Whilst Boxing SA did not make a presentation, they submitted their written input. Boxing SA has been established in terms of the South African Boxing Act, Act 11 of 2001, with the sole mandate to provide for a new structure for professional boxing in the Republic and to ensure the effective and efficient administration of professional boxing in the Republic.

The main challenge of Boxing SA that prohibits it from fulfilling its mandate in full, is a lack of funding and sponsorship. This is complicated by the current litigation process over broadcasting rights, which tend to sway potential sponsors away. The main source of revenue comes from the exchanges which are limited to sanctions and licence fees. In order for Boxing to perform fully, more funding from government is required to ensure that the programmes are implemented. It is also in the best interest of Boxing to address all the litigation against it to an end.

9. COMMITTEE OBSERVATIONS

- The budget of the department should be biased towards rural community sport development.

- The South African Sport Awards allocated budget within the Recognition system needs to be reduced in order to redirect more funds towards the development programmes some of which are currently underfunded.

- The current curriculum offers learners an opportunity to practice sport as an option. There is a need for further discussion on this issue with all the stakeholders in order to ensure that learners are afforded the opportunity to take part in sport and are provided with physical education.

- The SRSA 2014-2019 strategic plan should include clear targets on the rural development targets

- The plan to fill the vacancies as presented by the department should be monitored and all vacant posts must be filled by the end of the financial year as promised during the presentation.

- School sport should develop a database that will assist to trace performance and development over time so that the department can be able to monitor the progress of its programme in the system.

- The budget of the department does not respond to the challenges, whilst there is a slight increase on the budget in the Active Nation Programme, the budget on Infrastructure spending is not growing.

- The renaming of programmes to Active Nation and the further scrapping of the Siyadlala programme is the indication that the programme has not been functioning.

- The support to federations is important and equally so is the need for all the federations to comply with the regulation to be transparent, accountable and cost effective in the use of resources that they have been allocated. As a result the departmental intention to revise the National Sport and Recreation Act, Act 110 of 1998, is an essential aspect that will ensure that the Minister becomes empowered to intervene in matters of federations that seek to contravene this principle.

- 60% of the budget of Boxing SA is going towards compensation of its employees. More funding is needed to support Boxing SA to be able to implement its programmes.

- Transformation cannot be negotiable especially when it comes to ensuring that the women sport is treated equally like their male counterparts when it comes to funding of programmes.

10. RECOMMENDATIONS

The Committee recommends that the Minister for Sport and Recreation:

- Should intensify to monitor use of the 15% allocation of the MIG funds by municipalities in order for them to build sport and recreation facilities in rural communities.

- Should request for the increase of funds to implement the NSRP and accelerate the implementation of sport development programmes through increased allocation of funds to the previously disadvantaged communities.

- Should supply on time the relevant information regarding the intended amendments to the different pieces of legislations, with the aim of ensuring that the committee has enough time to prepare for the consultative processes.

- Should provide more support to female sporting codes in order to increase their level of participation in sport and recreation.

- Should continue supporting federations who are complying with the transformation mandate and develop an incentive scheme which will reward the federations who have shown progress in that regard.

- Should continue to engage the Department of Basic Education with regard to School Sport and explore the possibility of reviewing the School Act in order to ascertain that it captures it clarifies the implementation and funding of school sport programmes. The School Act should also include the control measures of conducting doping tests to athletes during the school sport competitions.

- Should encourage the Department of Basic Education to implement the curriculum of Physical Education in schools, in order to promote healthy lifestyle amongst school going children.

- Should provide adequate funding to Boxing SA in order for it to implement its development programmes.

The Portfolio Committee on Sport and Recreation, having considered Budget Vote 20: Sport and Recreation South Africa recommends that the House supports Budget Vote.

Report to be considered.