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CGE Report to PC for Women in the Presidency for the 1 st financial quarter of 2015/16 period

This report presents the financial performance of the Commission for Gender Equality (CGE) for the 1st financial quarter of the 2015/16 period. It covers budget overview, income and expenditure analysis, financial position, liquidity and solvency, risk management, supply chain management, and audit and internal control systems.

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CGE Report to PC for Women in the Presidency for the 1 st financial quarter of 2015/16 period

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  1. CGE Report to PC for Women in the Presidencyfor the 1st financial quarter of 2015/16 period Financial management

  2. Purpose of the presentation In accordance with provisions of the Constitution of South Africa, Act 108 of 1996 (chapter 13), The Public Finance Management Act of 1999 (as amended) – The Commission seeks to report to Parliament its financial affairs and activities for the financial year to 30 June 2015 And account for spending of the funds appropriated by parliament in terms of the Appropriation Act of 2015 as well as report on other financial management responsibilities provided for in terms of related prescripts

  3. Contents Financial performance for period to 30 June 2015 Budget overview Analysis of income and expenditure Financial Position as at 30 June 2015 Liquidity and solvency Going concern implications Other Financial Management matters Risk management Supply Chain management Corporate Services Audit and internal control systems

  4. Subprograms annual budget – 2015/2016 Strategic Objective 1 – R8.6m Strategic Objective 2 – R20.7m Strategic Objective 3 – R14.4m Strategic Objective 4 – R26m Approved Budget =R67.7m Final Budget = R69.7m Adjustment budget – not transferred from fiscus – R2m (retained from accumulated surplus)

  5. Core activities costing – approved budget Total budget Direct APP goods & Services

  6. Medium term allocations – 2015/16 6

  7. Distribution of allocation • Salaries make up two thirds of allocation – R46.7 m • 57% (R26,.7 m) of COE attributable to core service delivery –SO1 to SO3 • Operating overheads at 19% of full budget

  8. Income and Expenses – Q1 Results

  9. Income • Transfers of R16, 9 million in 2015 compared to R16, 8 million in 2014. Because of budget reduction effected by NT in 2014, there is no effective upward adjustment to baseline • Interest income (R154k compared to R179k in 2014). Due to reducing cash balances in the bank • Discretionary grant ex- SETA R12k in the first Quarter. Arose from compliance with SDA and related regulations • Total Income was therefore R17, 1 million in 2015 (Q1) compared to R18, 2 million in 2014 (Q1). Gender summit donations accounted for the difference in the main

  10. Expenditure over view • Total expenditure was R16, 8 m in 2015 v R17, 3 m in 2014. Discounting for the Gender summit effect, the 7% salary increase accounts for the movement/change between the two periods; by and large • Spending pressures imminent and is being curtailed as a matter of survival. COE turns in the upper of 70% (Q1 at 75% of spending), eroding planning/control space • Apart from noted COE induced pressures, there was a general lag in spending for activities linked to the core programme viz. Travel and venues, event management respectively at 10% and 3% of quarterly spending

  11. Analysis of expenditure – Q1/2015 Total spending Notes COE spend at 75% of total. Salary increases at 7% for staff to level 12. A provision was made for a 6% increase for SMS and Commissioners – a conservative estimate. The risk of budget structure (COE intensive should be noted Overall spending is within the norm ( 3/12 months = 25%)

  12. Expenditure analysis – Q1 Notes Core service delivery programme accounts for 52% of total for Q1 COE dominant at an average of 27% of the annual budget – a 2% runaway rate

  13. Expenditure analysis – Q1/2015

  14. Notes Q1 spending analysis by office Provincial offices spent at 4% of the total each, averaging R610 k per province per quarter Finance at 35% of total annual budget and 16% of spending for Q1 – mainly due to audit fees (R1,1 m in Q1) IT department ‘s main driver of increased spending is the professional services for the ICT infrastructure project at R205k for the quarter

  15. Financial Position • Solvency ratio at the end of June in 2014 was 139% compared to the current level of 143%. The cushion is mainly represented by net assets of R5, 1 million being surplus funds accumulated from the previous years • liquidity as represented by the current ratio is moving into un-favourable levels. As at 30 June 2015, current ratio was 98% (cash ratio was 97%) compared to 1: 1. 3 in the previous year. • Non-current assets increased by investment in fleet (R4 in the latter part of 2014/15) . ICT equipment CAPEX will be disbursed in Q2 of 2015/2016 pending final SCM delivery • Liabilities are made of R6,6 million (payroll & staff), Conditional grant of R3, 7 m and R1, 4 m for exchange/suppliers payables. • The investment would move assets from cash to PPE (long term). • Current spending pressure + decline in liquidity = Risk[CF &GC]

  16. Risk management

  17. Risk management • High Risk areas • Funding and spending pressures • Physical security especially on perils related to items of IT and vehicles. Controls and Risk transfer will mitigate - insurance • IT network efficacy & performance until the project is complete • Electricity supply - BCP • Accommodation leases • Massaging/content – reports and dissemination/communications • Compliance and internal controls • Case management system for complaints - effectiveness

  18. Supply chain management • High value procurement transactions (Acquisition management) • Desktops (73) and laptops (32). Bids received and evaluated. Estimated cost (combined R1, 3 m) • Accounting System improvements – winning bid was for R374, 130 • Travel and conferencing (2014 spend was R8 million). Tender was issued on 28 June 2015. The existing contract expires on 31 December 2015. • Performance Management • Defective performance by a service provider for the supply of servers. Payments (R771, 000) withheld . Remedial action effected for a full performance by 28 July 2015. • Logistics Management • Fleet management : fuel use and running costs within acceptable norm therefore no indications of misuse. • Office Accommodation • New interventions from national treasury for mass renewal of leases. • Exceptions are PTA office, Head Office, Free State office and Eastern cape office

  19. Year end and Audit updates • The regularity audit by AGSA concluded and audit report considered by the Audit Committee on 28 July 2015. Outcomes reportable with Annual report (prohibition by PFMA) • AR on AoPO (Audit of Performance Outcome) and AFS to be tabled in Parliament by the latest 30 September2015 as is required by the PFMA • The Commission continues to implement Action Plans agreed to from all previous audits.

  20. Thank You HAVE A GENDER RELATED COMPLAINT ???? REPORT IT TO 0800 007 709 TwitterHandle @CGEinfoFacebook: Gender Commission of South Africa

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