Annual Performance Plan 2015-2016 Presentation of the associated budget To : The Portfolio Committee for Women – Parliament of RSA Vote 13 Vote 13.

Annual Performance Plan Annual Performance Plan 2015-20162015-2016

Presentation of the associated budget

To : The Portfolio Committee for Women – Parliament of RSA

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ContentsContents Introduction Legislative Mandate Service Delivery focus areas The Financial Management framework The CGE funding in context – A medium term perspective

◦ General nature and structure of the CGE budget baseline◦ Challenges; Baseline erosion and the effect of recent

budgetary reductions The 2015/2016 proposed budget and matters related Risk

Management associated with the Annual Plan

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INTRODUCTION AND INTRODUCTION AND CONTENTSCONTENTS

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IntroductionIntroduction 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 seek approval by Parliament;◦ the appropriation of funds to enable the Commission to deliver services

in terms of its legislative mandate. The objects and outcomes for the appropriation period are contained in the Annual Performance Plan for 2015/2016 financial year

Furthermore; to fulfil the object for appropriation, this presentation outlines matters relating to the funding of both the short and long as well as the associated Risks relating to the achievement of the objectives stated in the strategic plan previously approved by Parliament

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AUTHORITYAUTHORITY

•The Constitution of South Africa, Act 108 of 1996

Commission on Gender Equality Act, Act 139 of 1996

•Promotion of Equality and prevention of Unfair Discrimination Act 4 of 2000 (PEPUDA)

• In terms of Section 187 the Commission must promote respect for gender equality and the protection, development and attainment of gender equality

• The Commission has the power as regulated by national legislation, which includes the power to monitor, investigate, research, educate, lobby, advise and report on issues concerning gender equality

• To promote, protect, monitor, research, gender equality by exercising powers which includes investigations, the commission of public hearings , etc

• In terms of section 20 of PEPUDA, the Commission must assist complainants and institute legal proceedings in the Equality Courts section 8 specifically tasked the CGE to litigate on behalf of the public against a range of prohibited grounds of unfair discrimination

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Legislative Mandate

Focus areas by the CommissionFocus areas by the Commission Programs to enhance Public awareness and education

Outreach programs

investigation of gender related complaints and provide redress

Investigate systemic violation of gender rights in the Public and private sector (PEPUDA)

Review and ensure the creation of a legislative framework that promotes the attainment of gender equality

Monitor the state adherence to international convention and treaties

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Relevant legislation – The Financial Relevant legislation – The Financial Management frameworkManagement framework• The Constitution of the Republic propagates and advances the

values of openness and accountability. Chapter 13 of the Constitution creates the framework

• Under Chapter 1 of the PFMA (The Act) the values are bolstered further by provisions stating that the object of the Act is to secure transparency, accountability and sound management of the resources

• The Framework for strategic planning and Annual Performance plans of 2010 propagates that operational budgets must be linked to the institutions strategic objectives and their respective legislated mandates

• Section 38 of the PFMA and related Treasury regulations promotes the integration of Risk Management practices into strategic planning and financial controls

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A MEDIUM TERM A MEDIUM TERM PERSPECTIVEPERSPECTIVE

The CGE funding in context

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The nature and structure of the CGE baseline budgetThe nature and structure of the CGE baseline budget

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• The budget of the Commission forms the main division of Vote 18 for the Ministry for women in the Presidency

• Three 3 programmes constitute the budget, namely; • Commissioners Governance & Support,• Corporate/Administration Support• Main Service/Core

• The top three spending drivers are:▫ Compensation of Employees 67% ( We are a service driven and therefore & human

resources intensive)▫ Professional Services 7% ( Litigations, audit fees, etc) ▫ Travel& Accommodation, event management & media – 11% (outreach & visibility are

at the core our strategy) ▫ Reports production and printing – 3% ( All work published after each research

study/investigation▫ Telecommunications, Courier Services and vehicles expenses – 4% (Offices country-

wide)

• Therefore over 90% of the total spending is made out of unavoidable expenditure in the main of which majority is fixed (COE for e.g.) -Less flexibility

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Medium term figures as at Jan 2015 post MTBPSMedium term figures as at Jan 2015 post MTBPS

Audited

Outcome Audited

Outcome Audited

Outcome Revised

estimate Medium-term estimate R thousand 2011/12 2012/13 2013/14 2014/15 2015/16 2016/17 2017/18Administration 23 312 27 313 30 214 30 511 31 946 33 825 35 517 Creation of enabling gender equity legislation

12 852 12 634 15 811 18 493 19 752 20 502 21 527

Protection and promotion of gender rights

8 450 11 266 8 991 10 293 10 777 11 411 11 982

Monitoring and compliance to treaties

6 095 7 079 6 936 7 938 8 311 8 800 9 240

Total expense 50 709 58 292 61 952 67 235 70 786 74 539 78 266 adjusted by - Extra budgetary sources: savings, donations and reductions

4 441 781 1 128 2 665 -3 098 -4 648

Allocation from National Treasury

55 150 59 073 63 080 69 900 67 688 69 891 78 266

Annual growth in available funding

7% 7% 11% -3% 3% 12%

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•Operations were sustained by surpluses reported (generated from interest income , donations and savings from COE – vacancies•Growth from Treasury allocation nominal at inflation rate and were eroded by higher cost of living adjustments realized above inflation

•Operations were sustained by surpluses reported (generated from interest income , donations and savings from COE – vacancies•Growth from Treasury allocation nominal at inflation rate and were eroded by higher cost of living adjustments realized above inflation

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Funding implicationsFunding implications The baseline is COE sensitive while the CGE rely primarily on staff

to execute mandate – A dilemma from budget cuts is the direct negative implication to service delivery

Over the years, increases from national treasury averaged 6% whilst cost of living adjustments for staff and Commissioners realised higher (at 8 to 10%) therefore eroding the base for Goods & Services critical for service delivery

Proclaimed through MTBPS , National Treasury reduced CGE’s baseline by R3.1 m or 4% for period 2015/2016 and R4.6 m in 2016/2017.

As a result. The delivery of services relating to the CGE’s legislated mandate is significantly and negatively impacted

Owing to the COE (fixed cost) and budget structure, the situation poses very significant going concern challenges

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Impact on planning for the current period Impact on planning for the current period

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Impact of funding deficiencies on 2015/2016 plansImpact of funding deficiencies on 2015/2016 plans

A R16 million budget deficit was noted. The activities for effective realisation of the strategic objectives in the plan were not adequately funded

The establishment will not be populated on unfilled position at head office

The scale of the APP activities was reduced and/or activities removed from plan, impacting on effectiveness in service delivery e.g. Programmes on advocacy, campaigns, number of clinics, staff training, etc

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Interim mitigating interventionsInterim mitigating interventionsCost containment plans implemented stringentlyEfficiency gains on:

◦ Use of fleet, telecommunications◦ Avoiding duplication of service◦ Use of media and alternative distribution methods for service

deliveryCost control plans target to yield, albeit under severe

pressure - R6 millionCurtailment of core APP – R4 millionThe establishment not filled with positions at Head

office in the main – R6 millionReview the current Business modelEscalation of funding discussions in line with provisions

of the CGE Act

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THE PROPOSED THE PROPOSED BUDGETBUDGET2015/2016 financial year

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Subprograms budget – Subprograms budget – 2015/20162015/2016

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Strategic Objective 1 – R8.6m

Strategic Objective 2 – R20.7m

Strategic Objective 3 – R14.4m

Strategic Objective 4 – R26m

Approved Budget =R67.7mFinal Budget = R69.7m

Adjustment budget – not transferred Adjustment budget – not transferred from fiscus – R2mfrom fiscus – R2m

Strategic Objective 1 – R8.6m

Strategic Objective 2 – R20.7m

Strategic Objective 3 – R14.4m

Strategic Objective 4 – R26m

Approved Budget =R67.7mFinal Budget = R69.7m

Adjustment budget – not transferred Adjustment budget – not transferred from fiscus – R2mfrom fiscus – R2m

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Core activities costingCore activities costing

SO Travel & Accomodation

Catering and Venues

Report writing, editing and layouts

Printing Radio Slots Consulting services

Total direct APP expenses

SO1 680 000 100 000 200 000 430 000 1 410 000

SO2 1 561 000 1 988 500 40 000 700 000 4 289 500

SO3 1 180 000 70 000 100 000 450 000 150 000 1 950 000

SO4 100 000 200 000 1 730 000 2 030 000 Grand Total 3 521 000 2 158 500 300 000 1 120 000 700 000 1 880 000 9 679 500

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Total budget

Direct APP goods & Services

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Medium term allocations – 2015/16Medium term allocations – 2015/16 Budget figures per line itemCls Total

Bank Charges 46 800 Compensation of Employees 46 734 700 Computer Servicing, Internet & Website 531 780 Courier Services 161 300 Depreciation & Amortisation 2 281 600 Employee Assistance Program 130 000 Media Outreach 700 000 Office Cleaning, Maintenance, Plants & Security 1 036 310 Office Consumables 132 400 Printing & Stationery 377 200 Professional Services 4 805 400 Report writing,Printing & Publishing 1 120 000 Subscriptions 235 400 Telecommunication Expenses 1 594 800 Training and Development 800 000 Travel, Accommodation and Related Expenditure 5 766 200 Vehicle expenses, maint, fuel and other 1 075 310 Venues, Catering & Event Management 2 158 800 Grand Total 69 688 000

Adjusted for conditional grant allocation B -2 000 000 B grant income will set off the depreciation charge on vehicles and IT equipment purchased during the year Allocation from National Treasury 67 688 000

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Distribution of allocationDistribution 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

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Strategic objective 1Strategic objective 1

Sub-strategies

Total Direct- Goods & Services

allocated costs (Overhead expenditure) Salaries

(COE) Grand total1. To monitor equality and evaluate the promotion of gender equality and relevant policies and practices of the public and private sector and report parliament 970 000 1 167 908 3 357 893 5 495 801 2. To initiate and/or participate in the review of the legislative framework in all spheres of government that impact on gender equality 100 000 217 285 624 724 942 009 3. To conduct performance assessments of political parties and the public and private sectors on the effective implementation of gender equality legislation policies and practices

150 000 54 321 156 181 360 502 4. To evaluate the implementation and effectiveness of national justice facilities in addressing gender discrimination.

60 000 108 643 312 362 481 005 5. To convene policy dialogues with relevant policy makers at national and provincial level on recommendations to promote gender equality contained in research reports and research activities

130 000 298 767 858 996 1 287 763 Grand Total 1 410 000 1 846 925 5 310 156 8 567 081

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SO 1 – Key pointsSO 1 – Key points12% (R8.5m) budgeted of which 62% is COE

(R5.3m)Transformation hearings; a flagship activity to

hold public and private sector accountable consumes most of the resources in this strategic objective – R5.5 m

The auditing/administration of gender barometer and related dialogues with policy makers also contributes materially to spending in this SO – R1.3 million

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Risk management - SO 1Risk management - SO 1

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Strategic objective 2Strategic objective 2

Sub-strategies Total Direct - Goods & Services

allocated costs (Overheads) Salaries Grand total

1. To timeously investigate complaints of violations of gender rights and identify appropriate re dress

629 500 1 197 785 3 443 792 5 271 077 2. Initiate an investigation into systemic violations of gender rights and identify remedial action.

1 350 000 2 444 459 7 028 148 10 822 607 3. To develop co-ordinated programme to promote gender equality

1 380 000 271 607 780 905 2 432 512 4. To initiate interventions for the sustainable development and promotion of gender equality by addressing violations in the social cultural political economic security and human rights dimensions

630 000 - - 630 000 5. To collaborate with organs of state civil society and other institutions for the effective development protection promotion and attainment of gender equality

300 000 325 928 937 086 1 563 014 Grand Total 4 289 500 4 239 778 12 189 932 20 719 210

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SO 2 – Key pointsSO 2 – Key pointsTaking case from complainants/public and conducts

investigation of systemic gender rights is main focus in terms of PEPUDA (s8 & 20) and CGE Act

Also COE reliant – services from internal staff members viz. Education and Legal Officers in the main, supported by HQ and Commissioners

Total allocation for the SO is R20, 7 m where COE amounts to R12.1 m (59% of SO budget)

The SO represents 30% of the total budget

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Risk management - SO 2Risk management - SO 2

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Strategic objective 3Strategic objective 3

Sub-strategies Total Direct - Goods & Services

allocated costs (Overheads)

Salaries Grand total

1. To conduct annual reviews and audits of state compliance with obligations under the conventions covenants and charters and to report on a regular basis to Parliament and the Office of the Speaker of Parliament

750 000 217 285 624 724 1 592 009 2. To interact with and present reports to national regional and international bodies on state compliance with conventions covenants and charters acceded to or ratified make recommendations for improvements and monitor implementation

1 200 000 2 987 672 8 589 958 12 777 630 Grand Total 1 950 000 3 204 957 9 214 683 14 369 640

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SO 3 – Key pointsSO 3 – Key pointsThis SO is set to monitor the state compliance to

international instruments, in which multi-disciplinary teams are used to research, monitor and develop reports for Parliament and multi-lateral institutions

Key activities for 2015 reporting are: CEDAW, MDG & AGDI, SCW, Beijing PFA

The expenditure of R14.4 m constitutes 33% of the budget for the main program. This is largely made out of by salaries (personnel time) & travel for research and reporting to multi-lateral institutions as well as printing/publications of the related reports

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Risk management - SO 3Risk management - SO 3

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Strategic objective 4Strategic objective 4

Sub-strategies Total - Direct Goods & Services

allocated costs (overheads) Salaries Grand total

1. To maintain optimal governance and oversight structures and policies between Commissioners and the Secretariat.

- 1 667 676 8 383 998 10 051 675 2. To maintain the financial management strategy so that it promotes effective efficient and economic utilisation of resources as well as accountability.

380 000 1 223 915 6 153 052 7 756 967 3. To develop and maintain an IT infrastructure that supports and promotes the organisational objectives of the CGE 480 000 314 550 1 581 356 2 375 906 4. To develop and implement comprehensive HR policies procedures and practices 1 030 000 417 239 2 097 608 3 544 847 5. Review the communications strategy and policy that promotes and enhances a positive public image of the CGE

140 000 358 759 1 803 610 2 302 370 Grand Total 2 030 000 3 982 140 20 019 624 26 031 764

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SO 4 – Key pointsSO 4 – Key pointsThe Governance, administration and management is

anchored on this SO: Commissioners, CEO and Support functions carry out activities to ensure accountability, efficiencies, effectiveness of operations.

R27m or 37% (of total budget) and is earmarked for spending as follows;◦ Salaries –R20 m (Prior year R19m ) – the structure will not

be populated with vacant positions for lack of funds◦ G&S – R6 m compared to prior year budgeted at R10m

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Risk management - SO 4Risk management - SO 4

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Thank you!!!Thank you!!!

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