BSA Briefing Portfolio Committee

DATE: 18 April 2012

Venue: Cape Town, Committee Room 2

BOXING SOUTH AFRICA

Mandate as per Boxing Act 11 of 2001:

To provide for a new structure for professional boxing in the Republic;

To ensure the effective and efficient administration of professional boxing in the Republic;

To recognise amateur boxing; To create synergy between professional and amateur boxing; To establish a Boxing Commission known as Boxing SA; To promote interaction between associations of boxers, managers,

promoters, trainers and officials and Boxing SA; and to provide for matters connected therewith

BSA HISTORY• No permanent CFO since 2005, last CFO was Lerato

Mokoena • Acting CEO 2009-2011.• Ineffective Audit committee - audit finding 2010/2011• Little or no proper internal audit function – audit

finding• Lack of sufficient financial resources obtained from

government to at least fund legislative requirements – R2.3million

• Lack of sponsorships • Decrease in income generating revenue ie. sanctioning

fees & licence fees• Lack of internal controls• Inefficient Strategic Plan - audit finding• BSA does not have resources to fund strategic

objectives

BSA FINANCIAL HISTORY SRSA grant 2010/2011 2009/2010 2008/2009 2007/2008 2006/2007

Annual grant 2 208 000 2 087 000 2 011 000 1 900 000 1 732 622

Additional grant 0 1 000 000 0 2 000 000 0

Total 2 208 000 3 087 000 2 011 000 3 900 000 1 732 622

2010/2011 2009/2010 2008/2009 2007/2008 2006/2007

Revenue 7 679 437 8 051 570 7 797 463 8 870 817 4 531 037

Expenditure 10 388 769 5 425 782 12 124 960 10 658 287 6 948 042

Surplus/(Deficit) -2 709 332 2 176 810 -4 327 497 -1 787 470 -2 417 005

AUDIT OPINIONS 2010/2011 2009/2010 2008/2009 2007/2008 2006/2007

QUALIFIED UNQUALIFIED QUALIFIED QUALIFIED UNQUALIFIED

Accumulated deficit as at 31 March 2011 = R6 248 040

BSA FINANCIAL HISTORY SRSA grant 2010/2011 2009/2010 2008/2009 2007/2008 2006/2007

Annual grant 2 208 000 2 087 000 2 011 000 1 900 000 1 732 622Additional grant 0 1 000 000 0 2 000 000 0

Total 2 208 000 3 087 000 2 011 000 3 900 000 1 732 622

Employee Cost 2 859 562 2 360 856 3 408 090 2 843 533 1 614 579Vs Annual Grant 2 208 000 2 087 000 2 011 000 1 900 000 1 732 622

Deficit -651 562 -273 856 -1 397 090 -943 533 118 043

•Other legislative costs are not funded by the government grant.•Such costs include but no limited to Internal & External audit fees, Board Fees,

Rental, Marketing Costs, Travel and accommodation costs related to Board & Committee meetings.

REVENUE

2011/2012

Sponsorship

(R0)

Sanctioning Fees - 30/09/201

1(R400 000)

Other provincial grants

(R0)

Forfeit fees –

30/09/2011

(R4000)

SRSA grant

(R2 307 000)

License Fees –

30/09/2011

(R260 000)

Revenue Vs Expenditure EstimatesRevenue 3 617 000

SRSA grant 2 307 000

Sponsorships 0

Sanctioning fees 800 000

Licence fees 500 000

Forfeit fees 10 000

Expenditure Refer to document provided

(10 863 087)

Deficit (7 246 087)

CREDITORS 31 March

2011

AGSA(R755 162)

Board Fees (R324 960)

Trade payables

(R878 051)

SARS(R8 604

497)

Audit Committee Fees

(R36 304)

BSA CREDITORS Major creditors & balances:

BSA TURNAROUND STRATEGY REQUIRES

R39 m

BOXING TECHNICAL CO-ORDINATOR NOMSA MDHLULI ACCOUNTS

ADMINSTRATORVERQUELENE JACOBS

IT & STATISTICS OFFICERSKHUMBUZO MOTHA

RECEPTIONISTLILLIAN DE WEE

GENERAL ADMINISTRATIVE

ASSISTANTMAJORIE THEBE

TOURNAMENTS & OFFICE ASSISTANTABRAM KAMBULE

PROVINCIAL MANAGERS

DIRECTOR OF OPERATIONSLOYISO MTYA (ACTING CEO)

DIRECTOR: COMMUNICATIONS & MARKETING

(VACANT)

CFO (OUTSOURCED: Financial Management Consultant)

DEPUTY MINISTER OF SPORT AN RECREATION HON. GERT OOSTHUIZEN

BOXING SA ORGANISATIONAL STRUCTURE

CEOMOFFAT QITHI

BSA BOARD

MINISTER OF SPORT AND RECREATION SAHON. MR. FIKILE MBALULA

HR MANAGER(VACANT)

FINANCIAL MANAGERTUMELO KEKANA

ACCOUNTS CLERK (VACANT)

PA to CEO(VACANT)

Appointment of permanent CEO – June 2011Appointment of new Board – August 2011 – the new

board consists of independent members from different lines of duties and with prior experience in BSA.

Financial management consultant has been appointed to carry out the duties of the CFO mainly oversight over the finance management of the entity since January 2011.

Appointment of a permanent CFO by July 2012Necessary Board sub committees have been

establishedAppointment of new Audit committee by June 2012.Development of new Draft Strategic plan and Annual

performance plan by the new Board.

BSA Turnaround Strategy

BSA has developed an Action Plan 2011/2012 based on audit findings and risk assessments thereto. The Action plan has been integrated into departmental operational plans. Financial management consultant monitors progress monthly which is then aligned to quarterly reporting.

New and revised policies have been approved to address control risks and monitoring of implementation is performed monthly.

Relocation of BSA Offices – to a more marketable and approachable location

BSA Turnaround Strategy

FUNDING FOR BSA TURNAROUND STRATEGY

Insufficient funding available for implementation of the turnaround strategy

What is BSA doing to obtain more funding?

• Request for SRSA to increase the annual grant to at least meet legislative requirements

• Board and CEO have begun applications to various organisations for sponsorships

•Analysing methods of increasing sanctioning fees and license fees.

THE END.

THANK YOU!