Annual Financial Statements Briefing to Portfolio Committee Parliament

Annual Financial Statements Briefing to Portfolio Committee Parliament of the Republic of SA 11 October 2011

Outline • • Statement of Financial Performance Statement of Financial Position Statement of Cash flow Financial management – Outcomes from the AGSA Report – Successes & Challenges

Statement of Financial Performance – Revenue …………… 1 • • Transfers from National increased by 6% from R 49, 112, 000 in 2009/10 Financial year to R 51, 949, 000 in 2010/11 This increase represents Only an adjustment for inflation on the baseline of the previous years i. e. The increase does not include additional funding for any change project R 206, 972 was also received from other revenue sources, mainly donor funding from Unifem realized at R 127, 805 made to finance the Mock Trial Session that was held in support to the department in processes leading to CEDAW session in Geneva held in January 2011 Total Revenue recorded therefore stood at R 52, 155, 972

Statement of Financial Performance – Revenue …………… 2

Statement of Financial Performance – Baseline budget figures CORPORATE SUPPORT PROGRAMMES CAPITAL EXPNDITURE Grand Total % spread by economic classification COMMISSIONERS: GOVERNANCE & SUPPORT Compensation of Employees 8, 219, 867 6, 654, 791 20, 302, 015 35, 176, 673 68% Goods & Services 1, 234, 800 6, 828, 900 7, 143, 300 15, 207, 000 29% 1, 565, 327 3% 1, 565, 327 51, 949, 000 Capital expnditure Grand Total % spread by program 9, 454, 667 13, 483, 691 18% 27, 445, 315 26% 53% 3% These programes were funded from the transfers made by Treasury during the year under review 100%

Statement of Financial Performance – Expenses …………… 1 • Total spending realized for the year was R 49. 8 million of which: – R 16, 96 m was on Goods and Services, where the main expenditure Drivers were: • • • Travel and accommodation : R 5, 5 million Professional Services : R 4 million and includes expenses such as Audit fees, legal costs, etc Printing & stationery : R 1, 6 million Telecommunications : R 2, 4 million Computer expenses (R 833, 276), Office maintenance etc (R 930, 412) – R 29, 9 m on Compensation of Employees, split per program as follows: • • • Main Core program : R 18 m Corporate Support: R 6, 4 m Commissioners: R 5, 6 m – R 180, 891 on Capital Expenditure, for purchase of assets as follows: • • Office Equipment : R 112, 753 Office Furniture and Computer Equipment respectively for R 39, 389 and R 28, 749

Statement of Financial Performance – Expenses …………… 2 Actual expenditure for the 12 months period ending 31 March 2011 COMMISSIONERS: GOVERNANCE CORPORATE SUPPORT & SUPPORT PROGRAMMES CAPITAL EXPNDITURE Grand Total % spread by economic classification Compensation of Employees 5, 566, 679 Goods & Services Capital expnditure 6, 399, 695 1, 509, 171 17, 971, 185 8, 938, 997 29, 937, 560 6, 513, 985 16, 962, 153 180, 891 Depreciation and amortisation 2, 681, 411 Grand Total % spread by program 7, 075, 850 18, 020, 104 14% 24, 485, 170 36% 60% 180, 891 49% 34% 180, 891 0% 2, 681, 411 5% 49, 762, 015 0. 4% This spending compares favourable against the budget figures of R 51, 9 million shown above 100%

Statement of Financial Performance – summary • A surplus of R 2, 574, 849 was recorded for the year under review, compared to a deficit of R 2, 329, 703 in the preceding period • Savings from Salaries ( of R 5, 2 m) due to vacancies a the major contributor to the reported surplus • Offset partly by the depreciation expense of R 2, 7 million • Capital expenditure budget was also under spent by R 1, 56 million mainly for the procurement for the IT infrastructure

Statement of Financial Position…… 1 • Current assets levels increased year on year from R 1, 6 m to R 9 m mainly being constituted of Cash & cash equivalents • Non-Current assets carrying amounts are diminishing due to age and were R 2, 2 million in 2010/11 compared to R 4, 88 m as at end of 2009/10. The movement was mainly due to depreciation • Current liabilities have increased compared to prior year, from R 7, 4 m to R 9, 6 m in the current year mainly as a result of the rise in provisions for DPW • The Net Asset situation shows a final improvement at R 1, 6 million as compared to a negative amount of R 969, 627 as at 31 March 2010

Statement of Financial Position…… 2 • Contingencies disclosed in the AFS a made out of liabilities mainly from the following claims: – Department of Public Works R 5, 2 million : Still being followed through with the department with support from National Treasury and Do. J – Axolute R 814, 192 – the matter having been withdrawn by the plaintiff and the contingency falls away post balance sheet date – CSAP – The possible liability emanates from the part ( R 2, 8 m ) that other parties to the Mo. U viz. HRCSA & OPP owe to the Service Provider and given the firm commitment by these parties, the probability of the liability taking effect is minimal or completely diminished

Statement of Cash flow • • • Cash generated is mainly accounted for by injections from National Treasury: R 52 m compared to R 49 m in the past period The cash was utilized for purposes of operations: Personnel costs as well as Goods & Services at R 44, 7 million whilst 47, 5 million was utilized in the previous financial year, comparatively Minimal amount of cash (at R 180, 891) was utilized for the acquisition of fixed assets, similarly so in the previous year This culminated in excess cash at hand of R 8, 87 million at end of 2010/11 compared to R 1, 6 million as at 31 March 2010 of R 969, 627 as at 31 March 2010

Financial Management & Audit Outcomes……. . 1 • • An improvement in the financial Management environment resulting in an Unqualified Report by AGSA Matters emphasized which are been dealt with by management are: – Irregular, Fruitless & wasteful expenditure: Regularization process under process with National Treasury. The corrective action needed does not require recovery as there has not materially been any embezzlements, whatsoever but includes interventions to ensure that officials responsible stems recurrence – Compliance in terms of reporting: PFMA, GRAP & other standards, the situation is materially improving because of appropriate staffing choices as well as development – Procurement : the Commission has created the SCM unit since January 2011 and already the intervention is yielding results that includes procedures to avoid irregular spending –

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