BRIEFING TO THE STANDING COMMITTEE ON APPROPRIATIONS ON

BRIEFING TO THE STANDING COMMITTEE ON APPROPRIATIONS ON THE FINANCE BILL The Presidency and the Department of Women, Children and People with Disabilities Presenter: Gillian Wilson| Public Finance : Governance and Administrative Services, National Treasury | 06 November 2015

Presentation outline • Summary of the Finance Bill [B 31 -2015] • 2008/09 Unauthorised expenditure for the Presidency • 2010/11 Unauthorised expenditure for the Department of Women, Children and People with Disabilities 2

Finance Bill [B 31 -2015] • The Bill is aimed at implementing the recommendations of the Standing Committee on Public Accounts on unauthorised expenditure and funding mechanism • The recommendations were adopted by the National Assembly on 23 June 2015 • The Finance Bill provides for the authorisation of national government unauthorised expenditure arising from the 2004/05, 2007/08, 2008/09 and 2010/11 financial years • The Bill follows the procedure for authorisation of unauthorised expenditure as outlined in section 34(1)(a) and (b) of the Public Finance Management Act, 1999 (PFMA) 3

Finance Bill [B 31 -2015] • The following presentation is confined to the treatment of unauthorised expenditure incurred by two of the four affected national departments mentioned in the Bill, namely, The Presidency and the Department of Women, Children and People with Disabilities. • In terms of which, the Bill authorised that unauthorised expenditure incurred by the Presidency (2008/09 and 2010/11) and the Department of Women, Children and People with Disabilities (2010/11) be appropriated as direct charge against the National Revenue Fund to cover the overspending of the vote appropriations 4

2008/09 Unauthorised expenditure for the Presidency 2008/09 Programmes Administration Communications Executive Coordination (Over)/under Final appropriation Actual expenditure spending 198, 048 212, 012 -13, 964 21, 328 20, 522 806 92, 359 93, 712 -1, 353 311, 735 326, 246 -14, 511 Salary of the President 2, 107 - Salary of the Deputy President 1, 897 - Other* 1, 000 - 316, 739 331, 250 -14, 511 277, 718 151, 389 126, 329 29, 444 293, 805 150, 583 143, 222 29, 575 -16, 087 806 -16, 893 -131 9, 577 7, 870 1, 707 316, 739 331, 250 -14, 511 Subtotal Direct charge against the National Revenue Fund Total Economic Classification Current Payments Compensation of employees Goods and services Transfers and subsidies Payments of capital assets Total 5

2008/09 Unauthorised expenditure for the Presidency The Presidency overspent its 2008/09 budget of R 316. 7 million by R 14. 5 million or 4. 6 per cent. This was in respect of expenditure incurred for: − Hosting of the National Orders and Awards Ceremony − Legal fees − Travel and subsistence and related expenses incurred for the mediation in Zimbabwe − Leave gratuity payments made to former Deputy President − Hosting of the National Disability Summit; United Nations Conventions and the creation of additional Ministries in the Presidency 6

2010/11 Unauthorised expenditure for the Presidency 2010/11 Final appropriation Programmes Administration Actual expenditure (Over)/under spending 291, 759 312, 994 -21, 235 20, 490 25, 870 -5, 380 Executive Coordination 495, 214 497, 027 -1, 813 Subtotal 807, 463 835, 891 -28, 428 Salary of the President 2, 394 2, 107 287 Salary of the Deputy President 2, 156 1, 843 313 812, 013 839, 841 -27, 828 393, 908 421, 454 -27, 546 Compensation of employees 228, 735 236, 302 -7, 567 Goods and services 165, 173 185, 152 -19, 979 399, 087 399, 369 -282 19, 018 0 812, 013 839, 841 -27, 828 Communications Direct charge against the National Revenue Fund Total Economic Classification Current Payments Transfers and subsidies Payments of capital assets Total 7

2010/11 Unauthorised expenditure for the Presidency The Presidency overspent its 2010/11 budget of R 812 million by R 28. 4 million or 3. 5 per cent. This was in respect of expenditure incurred for: − Accruals carried forward from the 2009/10 financial year − Creation of additional Ministries for National Planning, and Performance, Monitoring and Evaluation, following the government restructuring process of 2010. − Legal fees − Travel and subsistence due to increasing international commitments by the principals in conflict resolution processes on the continent which were not planned for and fell outside of the adjustments budget process − Computer services to address additional capacity requirements emanating from new ministries as well as costs relating to the Presidential hotline − Leave gratuities obligations and municipal transfers for vehicle licenses 8

2010/11 Unauthorised expenditure for the Department of Women, Children an People with Disabilities

2010/11 Unauthorised expenditure for the Department of Women, Children an People with Disabilities • Since the inception of the department, the budget for the Department of Women, Children and People with Disabilities (DWCPD) has been growing in real terms • Our understanding with the department has been that it should spend within its budget, and manage its budget pressures through the budget process • The department overspent its 2010/11 budget of R 106. 192 million by R 3. 728 million or 4 percent • Sources of budget pressures leading to unauthorised include; – R 674 000 for international travel and accommodation – R 2. 594 million for the celebration of National Women’s Day, and – R 460 554 in telecommunications related expenses.

2010/11 Unauthorised expenditure for the Department of Women, Children an People with Disabilities • The Standing Committee on Public Accounts (SCOPA) has recommended that the unauthorised expenditure be financed as a direct charge against the National Revenue Fund. • The DWCPD no longer exists. • The additional funding recommended by the SCOPA should be allocated to the new and successor Department of Women.

THANK YOU 12