BUDGET 2009/10

PRESENTATION TO THE

SELECT COMMITTEE ON EDUCATION

AND RECREATION

NCOP

1 JULY 2009

EPE 2009: VOTE 17: SRSA

AIM:

The aim of Sport and Recreation South Africa is to maximise access, development and excellence at all levels of participation in sport and recreation to improve social cohesion, nation building and the quality of life of allSouth Africans.

EPE 2009: PROGRAMME PURPOSES

Programme 1: AdministrationPurpose: Administer, guide and manage Sport and Recreation South Africa.

Programme 2: Sport Support ServicesPurpose: Support public entities and sport and recreation bodies, and monitor and report on their performance.

Programme 3: Mass ParticipationPurpose: Provide support and strategic direction to increase the number of participants in sport and recreationin South Africa.

EPE 2009: PROGRAMME PURPOSES

Programme 4: International Liaison and EventsPurpose: Coordinate inter and intra-government sport and recreation relations and support the hosting ofidentified major events.

Programme 5: Facilities CoordinationPurpose: Coordinate the provision and management of sustainable sport and recreation infrastructure.

Programme 6: 2010 FIFA World Cup UnitPurpose: Coordinate all inter and intra-government relations, and support the hosting of the 2010 FIFA World Cup in South Africa.

EPE 2009: MEASURABLE OBJECTIVES

Programme 2: Sport Support Services

• Increase the number of South Africans participating in sport and recreation by approximately 12% over the next 3 years by supporting NFs to run club development programmes, with a focus on disadvantaged communities.• Increase the number of high performance athletes by approximately 10% over the next 4 years through TID, with specific emphasis on participants from disadvantaged communities and marginalised constituencies.• Ensure good corporate governance in sports federations by providing education and training, financial andhuman resource support to sports federations.

EPE 2009: MEASURABLE OBJECTIVES

Programme 3: Mass Participation

• Improve delivery of the MPP in provinces by monitoring and supporting all provincial departments in the delivery of their mass sport and recreation activities.• Increase the number of participants in sport & recreation by 20% by hosting more festivals, social mobilisation programmes and sports tournaments in 2009/10.• Contribute to the 2010 FIFA World Cup legacy by monitoring and supporting provinces and otherstakeholders to deliver 45 mass mobilisation programmes by June 2010.

EPE 2009: MEASURABLE OBJECTIVES

Programme 4: International Liaison & Events

• Maximise the probability of success of SA teams and individuals in international events by improving expertise in coaching, officiating, administration and sport science through at least 10 bilateral exchanges in 2009/10.• Encourage peace and social cohesion by promoting sports relations and organising joint activities as areconciliation pilot project in one post-conflict African country in 2009/10.• Increase the number of sports tourists to SA by providing 4 national federations with logistical and financial assistance to host 4 international events in 2009/10, as part of the sports tourism strategy.

EPE 2009: MEASURABLE OBJECTIVES

Programme 5: Facilities Coordination

• Improve the provision and management of sport and recreation facilities in municipalities in 2009/10 by:– advocating and lobbying 100 municipalities through visits, meetings and workshops to allocate moreresources for sport and recreation facilities from the municipal infrastructure grant– providing technical support to 100 municipalities on the construction and management of facilities– providing 5 mobile gyms to 5 municipalities to establish community gymnasiums.

EPE 2009: MEASURABLE OBJECTIVES

Programme 6: 2010 FIFA World Cup Unit

• Ensure that all approved competition venues are completed by December 2009 by monitoring progress andensuring that all role players deliver on their assigned responsibilities, as indicated in the funding agreementand the construction programme.• Align 2010 FIFA World Cup programmes with broad government strategic objectives and ASGISA by monitoring the social impact of the stadium constructionprogramme, focusing on the number of jobs created and small enterprises involved in the procurementprocess.

EPE 2009: SRSA INDICATORS 2009/10

Indicator Target

Number of NFs supported financially and

logistically each year

58

Number of new junior athletes supported to excel in

international competitions each year

150

Number of elite athletes supported each year 1 157

Total number of people trained in sport and

recreation as coaches, administrators, technical

Officials and facility managers

13 500

Total number of sports clubs supported 600

EPE 2009: SRSA INDICATORS 2009/10

Indicator TargetTotal number of participants in sport and recreation

mass participation programme

4 million

Number of sport & recreation facilities (community

gyms) equipped with apparatus each year

12

Number of 2010 service level agreements managed

each year

30

Number of 2010 FIFA World Cup guarantees on

target with FIFA deadlines

17

Number of people trained as sports event

volunteers each year

500

EPE 2009: BSA INDICATORS 2009/10

Indicator Target

Number of development tournaments each

year

48

Number of tournaments for SA titles each

year

14

Number of international tournaments in SA

each year

21

Number of participants (boxers, trainers,

managers) trained in tax matters,

biokinetics and ring mechanics each year

84

EPE 2009: SAIDS INDICATORS 2009/10

Indicator Target

Number of tests conducted each year on

SA athletes

3 100

Number of sporting disciplines tested each

year

52

Number of doping control officers trained

each year

90

Number of handbooks distributed to

athletes each year

3 000

EPE 2009: EXPENDITURE TRENDS

• Expenditure increase from R436.8 million in 2005/06 to R4.9 billion in 2008/09 at an average annual rate of 124%, due mainly to the additional allocations for upgrading and constructing stadiums for the 2010 FIFA World Cup.• Over the 7-year period, spending in programmes other than the 2010 FIFA World Cup Unit increase at an average annual rate of 25.8%, mainly as an extension of the conditional grant for the MPP, which has included school sport since 2006/07 and 2010 legacy projects since 2007/08.• Over the medium term, expenditure is expected to decrease to R771 million at an average annual rate of46%, as spending on the 2010 FIFA World Cup will be completed.

EPE 2009: EXPENDITURE TRENDS

• The increased allocations to the MPP conditional grantaccounts for the 475.4% growth in transfers to municipalities and provinces between 2005/06 and 2008/09.• However, in line with the overall projected expenditure, transfers to municipalities and provinces areexpected to decline by 53.8% over the MTEF period, from R4.6 billion in 2008/09 to R452 million in 2011/12.• Transfers of R15 million (2009/10) and R40 million (2010/11) are made to FIFA to refund it for the VAT paidon tickets for the 2009 FIFA Confederations Cup and the 2010 FIFA World Cup.

EPE 2009: EXPENDITURE TRENDS

• Expenditure in the international liaison and events programme increased from R6 million in 2005/06 toR42.5 million in 2008/09, at an average annual increase of 92.2%. This was to cater for major international events, particularly the 2008 Olympic Games and hosting the Zone VI youth games in December 2008. The programme’s expenditure is expected to decrease by 57.6% in 2009/10 as a result of these once-off allocations, followed by an average annual increase of 20% over the two outer years of theMTEF period.

EPE 2009: EXPENDITURE TRENDS

The 2009 Budget provides additional allocations over the MTEF period of R297.4m, R266.2m, and R41.8m for:• scientific support services (R8m in 2010/11 and R40m in 2011/12)• the conditional grant for 2010 FIFA World Cup stadiums development (R205m in 2009/10 and R195m in 2010/11)• inflation adjustments for 2010 FIFA World Cup stadiums development (R56.1m in 2009/10 and R7.3m in 2010/11)• inflation adjustments for 2010 FIFA World Cup host city operational grant (R19.6m in 2009/10 and R14.3m in 2010/11)• personnel inflation adjustments (R1.6m, R1.5m and R1.6 m).

2006/07 2007/08 2008/09 2009/10

Budget 959 946 5 067 207 4 909 686 2 859 920

Expenditure 886 548 5 048 000 4 871 234 -

Variance 73 398 19 207 38 452 -

% Spent 92.4% 99.6% 99.2% -

BUDGET AND EXPENDITURE TREND

AdjustedAllocation

2006/07

AdjustedAllocation

2007/08

AdjustedAllocation

2008/09Allocation

2009/10

R '000 R '000 R '000 R '000

Administration 83 177 80 667 80 580 86 957

Sport Support Services 86 146 97 830 114 754 99 800

Mass Participation 166 970 248 970 344 921 449 418

International Liason & events 618 553 12 109 42 488 18 010

Facilities Co-ordination 5 100 5 631 5 805 6 472

2010 FIFA World Cup Unit - 4 622 000 4 315 138 2 199 263

959 946 5 067 207 4 909 686 2 859 920

MTEF BUDGET PER PROGRAM

MTEF BUDGET PER ECONOMIC CLASSIFICATION

AdjustedAllocation

2006/07

AdjustedAllocation

2007/08

AdjustedAllocation

2008/09Allocation

2009/10

R '000 R '000 R '000 R '000

Current Payments 176 463 199 054 261 581 207 347

Compensation of employees 40 226 46 079 60 211 67 934

Goods and services 136 237 152 975 201 370 139 413

Transfers & Subsidies 776 736 2 958 604 4 865 093 2 648 840

Provinces 119 000 194 000 293 655 402 250

Municipalities 600 029 4 605 004 4 295 000 2 168 664

Departmental Agencies 6 857 16 151 7 543 7 857

Public Corporations and private enterprises 100 120 141 167

Foreign governments and international organisations - - - 15 000

Non-Profit Institutions 30 750 24 818 22 415 27 445

Households 20 000 25 000 26 150 27 457

Payment for capital assets 6 747 3 060 3 201 3 733

959 946 5 067 207 4 909 686 2 859 920

SPORT AND RECREATION SOUTH AFRICA VOTE 17

  Medium-term expenditure estimate

  2008/09 2009/10 2010/2011 2011/12

  R'000 R'000 R'000 R'000

Administration        

Current Payments 80,924 85,885 88,462 97,349

Transfers and Subsidies 195 224 234 248

Payment of capital assets 2,201 848 900 954

Client Support Services        

Current Payments 51,577 37,098 38,971 62,960

Transfers and Subsidies 55,054 62,702 64,567 68,439

Payment of capital assets -

-

-

-

Mass Participation        

Current Payments 51,566 47,168 42,303 50,470

Transfers and Subsidies 290,000 402,250 426,385 451,968

Payment of capital assets -

-

-

-

International Liaison and Events        

Current Payments 42,488 18,010 23,651 26,070

Transfers and Subsidies -

-

-

-

Payment of capital assets -

-

-

-

Facilities Co-ordination        

Current Payments 5,105 3,587 3,687 4,908

Transfers and Subsidies - - -  - 

Payment of capital assets 1,000 2,885 3,052 3,235

2010 FIFA World Cup Units        

Current Payments 21,138 15,599 5,421 4,386

Transfers and Subsidies 2,895,000 2,183,664 552,566 -

TOTAL 3,496,248 2,859,920 1,250,199 770,987

SPORT AND RECREATION SOUTH AFRICA VOTE 17

ECONOMIC CLASSIFICATION

Medium-term expenditure estimate

2008/09 2009/10 2010/11 2011/12

R'000 R'000 R'000 R'000

Current Payments 252,798 207,347 202,495 246,143

Compensation of Employees

62,331

67,934

68,362

68,423

Goods & Services

190,467

139,413

134,133 177,720

         

Transfer and subsidies 3,240,249 2,648,840 1,043,752 520,655

Provinces 290,000 402,250 426,385 451,968

Municipalities

2,895,000

2,168,664

512,566 -

Departmental Agencies

7,543

7,857

8,310

8,808

Public corporations & private enterprises

141

167

174

184

Foreign governments and international organis - 15,000 40,000 -

Non-profit institutions

21,415

27,445

27,624

29,280

Household

26,150

27,457

28,693

30,415

         

Payment for capital assets 3,201 3,733 3,952 4,189

Machinery and equipment

3,201 3,733 3,952 4,189

Software and other intangible assets        

  3,496,248 2,859,920 1,250,199 770,987

Mass Sport and Recreation Participation Programme grant

Column A Column BForward Estimates

2010/11 2011/12Eastern Cape 62 765 66 531 70 523 Free State 26 591 28 186 29 877 Gauteng 63 834 67 664 71 724 KwaZulu-Natal 85 148 90 256 95 671 Limpopo 42 023 45 604 48 340 Mpumalanga 29 870 31 663 33 563 Northern Cape 22 686 21 927 23 243 North West 31 096 34 022 36 063 Western Cape 38 237 40 532 42 964 Unallocated - - TOTAL 402 250 426 385 451 968

2009/10 AllocProvince

Legacy

Column A Column BForward Estimates

2010/11 2011/12R'000 R'000

Eastern Cape29 652 31 431 33 316

Free State 12 307 13 045 13 827Gauteng 30 342 32 162 34 091KwaZulu-Natal 39 170 41 519 44 010

Limpopo 22 687 22 169 23 499Mpumalanga 13 880 14 713 15 595Northern Cape 6 736 9 020 9 561North West 14 685 15 567 16 501Western Cape 17 791 18 859 19 990

TOTAL 187 250 198 485 210 394

Province2009/10

School Sport Mass Participation Programme

Column A Column BForward Estimates

2010/2011 2011/12R'000 R'000

Eastern Cape 17 046 18 069 19 153Free State 7 075 7 499 7 948Gauteng 17 443 18 489 19 598KwaZulu-Natal 22 517 23 868 25 300Limpopo 9 692 9 743 10 327Mpumalanga 7 978 8 458 8 965Northern Cape 7 579 8 034 8 516North West 8 442 8 949 9 485Western Cape 10 228 10 841 11 491

TOTAL 108 000 113 950 120 787

Province2009/10 Allocations

Siyadlala

Column A Column BForward Estimates

2010/11 2011/12R'000 R'000

Eastern Cape 16 067 17 031 18 052Free State 7 209 7 642 8 100Gauteng 16 050 17 012 18 032KwaZulu-Natal 23 463 24 870 26 362Limpopo 9 644 9 692 10 273Mpumalanga 8 011 8 492 9 001Northern Cape 8 370 8 873 9 405North West 7 968 9 507 10 077Western Cape 10 218 10 831 11 480

TOTAL 107 000 113 950 120 787

Province2009/10Allocations

INFRASTRUCTURE BUDGET

2010 WORLD CUP STADUIM GRANT

Allocation 2006/07

Allocation2007/08

Allocation 2008/09

Allocation 2009/10

Municipality (R'000) (R'000) (R'000) (R'000)

Nelson Mandela 110,087 118 181 491 000 132 652

Mangaung 4,000 4 550 127 353 64 907

Ellis Park 4,000 155 468 93 532 -

Soccer City 97,476 923 797 828 726 212 157

City of Tshwane 4,000 52 778 70 914 55 800

eThekwini 108,977 811 871 901 758 525 393

Polokwane 81,152 613 599 291 000 93 826

Mbombela 88,052 469 916 250 500 156 833

Rustenburg 4,000 72 215 114 217 54 800

City of Cape Town 98,256 842 247 1 126 000 872 296

600 000 4 605 000 4 295 000 2 183 664