Mass Sport & Recreation Participation Programme Grant Spending: 1st quarter 2011/12

Meeting report

Mass Sport & Recreation Participation Programme Grant Spending 1^st quarter 2011/12
The Chairperson noted that the MECs for Sport, Recreation and Culture had been asked to report on the spending for the first quarter on the Mass Sport and Recreation Participation Programme (MSRPP), which was a conditional grant. However, he first called for a presentation by National Treasury (NT).

Mr Edgar Sishi, Director: Provincial Budget Analysis, National Treasury, provided an outline of the spending patterns of the provinces. He explained the scope of the grant, which was to facilitate mass participation, within communities and schools, through selected sporting and other participatory activities, and empowerment of communities and schools in conjunction with relevant stakeholders. He noted that funds were distributed to provinces according to a number of criteria, including the needs analysis, performance, the equitable share formula and a base allocation of R10 million.

The total budgeted amount for the grant was R461.9 million. Actual spending, expressed as a percentage of the main budget across the different provinces, as at 30 June 2011 was as follows: Eastern Cape 9.1%, Free State 37.9%, Gauteng 19.7%, KwaZulu Natal 16%, Limpopo 15.9%, Mpumalanga 19.5%, Northern Cape 17%, North West 13.7%, and the Western Cape 14.1%.

Some of the challenges facing the provinces, as identified by the National Treasury, were then outlined. There were problems in capacity, as the grant framework made provision for permanent staff, but not all the provinces had appointed full time staff. Only Limpopo, North West and Western Cape had reported appointing any staff for the programme in the first quarter of 2011/12.

Another challenge identified was the persistent non-adherence to business plans. The Head of Department (HOD) had to approve business plans but performance reports reflected deviation from plans by some Provincial Departments. Poor reporting continued to be a problem, as illustrated by the fact that KwaZulu Natal (KZN) had failed to submit a performance report for the first quarter as required by Division of Revenue Act (DORA).

He also mentioned that the National Treasury conducted a technical assessment of the business plans for both the 2010/11 and 2011/12 financial years. He noted that there were improvements in the quality of the plans submitted, but highlighted that actual performance against those plans still needed to improve.

The last concern was that government officials used public funds to purchase their personal tickets. The Minister of Finance had referred the matter to the Auditor-General to investigate, and the final assessment would be conducted once the audit outcomes were officially available, after 31 August 2011.

Discussion
Mr B Mashile (ANC Mpumalanga) asked why the World Cup ticket investigation was being delayed and why was a need to wait for the Auditor-General’s report on the matter.

Mr Sishi replied that this was not a normal audit query, but something quite specific that the Auditor General was asked to investigate separately. He was unable to comment on the timeline but explained that as far as he was aware, the Auditor General provided an opportunity for concerned departments to respond, which would add time to the process.

Mr Kobus Kellerman, Chief Financial Officer, Free State Provincial Department of Arts, Culture and Recreation, wanted to raise a point of clarity, saying that the projected over expenditure of R5 million that was set out in Mr Shishi’s presentation was incorrect, due to incorrect information being submitted by the Department. He did not think that his department would overspend. The business plan was signed off and had already been submitted.

Mr Sishi responded by clarifying that he had been speaking not about non-submission of business plans, but rather of non-submission of performance reports. DORA required performance reports and business plans to be submitted on time, so that money could be transferred.

Mr Brent Walters, Head of Department, Western Cape Provincial Department of Sports, explained that his department had experienced a delay in submitting the financial information, as it had some difficulty capturing it on the prescribed template. The information had in fact been submitted, albeit in a different format.

Mr Sishi said he found it peculiar, as none of the other provinces had experienced any difficulty with the template. He said that inaccurate reports were a major challenge, and that the provinces had not captured the number of people participating in the programmes, and this was critical data. The submission of incomplete or inaccurate information made it very difficult to plan.

Eastern Cape Provincial Department report
Ms Xoliswa Tom, MEC for Sport, Recreation and Culture, Eastern Cape, presented the information pertaining to the spending of the MSRPP grant to the Committee. She did not dispute the figures presented by National Treasury.

Ms Tom noted, in respect of staff capacity, that this provincial Department had a vacancy for a chief director to deal with the conditional grant.  This Provincial Department had hired 501 sports assistants to serve 613 wards in the province, and this was in line with the vision of the Department of Sport and Recreation (SRSA). Their responsibilities were to compile databases in relation to sport and recreation activities in the ward, to monitor and evaluate sporting activities in the ward supported through the grant funding, to assess sport resources in the ward and liaise with sport structures, ward councillor and community development workers on programmes and projects in the ward.

She noted that challenges included problems in coordination with the Eastern Cape Department of Education. Some of the schools were provided with sporting equipment but lacked storage space. Her department also struggled with monitoring and evaluation of the conditional grant programme. A further challenge arose with “age cheating” by school and federation structures, and to rectify this her department was planning a workshop. The late approval of district plans and a shortage of personnel in the districts also presented challenges.

On the positive side the Provincial Department had developed partnerships with Border Athletics, Cricket and Rugby. It was now focusing on ensuring that children who attended programmes benefited from the relationships and became champions. Other achievements included the training of cricket scorers, distribution of equipment and kits to Buffalo City, Butterworth, Willowvale, Ngqutu, Ngculu, Centane, and Mzwini. The Eastern Cape team was selected for the 14 World Gymnaestrada in Lausanne (one of 93 participants) and had conducted Golden Games workshops in Grahamstown for volunteers working with the elderly.

She explained that under-spending arose from a delay in the signing of the business plan, and that the recruitment of sports assistants was slow.

Discussion
Mr Chaane asked why there was a delay in the hiring of sports assistants.

Ms Tom replied that the delay was due to protracted negotiations but that the assistants would be formally employed with effect from 1 September 2011

Mr Mashile asked if the business plan was the main problem.  He felt that the Department had the required capacity, but was still unable to deliver as required. He queried the qualifications of the personnel appointed. He also sought clarification on some of the information presented, since slide 11 seemed to indicate that the sports assistants were already appointed, which conflicted with the statement that they would begin work on 1 September. He also probed the link between the late submission of documents and the late signing of those documents, and asked if there was not a problem with departmental systems.

Ms Tom clarified that the sports assistants were being interviewed and that their official employment would begin on 1 September 2011. Slide 11 was a reflection of the recruitment process. She explained that when her department was formed, it was detached from the Provincial Department of Education, and many of the staff who were taken across were teachers. A programme should have been put in place at that time to ensure that they were trained for the jobs into which they then moved.  She believed that people should have to study towards attaining qualifications for the position they held, and she was currently looking into this. She agreed to provide the Committee with a list of qualifications of the staff.

Ms Tom then commented on the quality of reporting. This department sent monthly reports, which were based on the prescribed templates and therefore contained all the relevant information. She said, in regard to systems, that the department had been examining the impact of the systems that it was using, including getting feedback from communities, and this had contributed to some of the delays.

Mr M Makhubela (COPE, Limpopo) asked why there were 501 sports assistants for 613 wards.

Ms Tom answered that where wards were in close proximity to each other, one person was appointed to serve two or three wards.

The Chairperson asked how the budget was broken down, and how money was and transferred to wards. He asked what factors were taken into account when the budget was drawn up, whether field workers were the same as sports assistants, and requested that detailed figures of money transferred to the wards should be sent to the Committee.

Ms Tom replied that field workers and sports assistants were the same. She agreed to send a report of money transferred to districts, who in turn transferred money to wards.
Mr Mashile also added that he would like the report to include the timelines for reporting and spending at district level. He urged the Department to hire suitably qualified personnel.

Mr Chaane expressed that he expected a better report in October.

Free State Provincial Department report
Ms Kutlwano Tlhakudi, Chief Director: Sports and Recreation, Free State, explained that a total budget of R8.6 million was spent on the establishment of the Mass Participation school sports structures, which included support for sport code-specific leagues, providing schools with equipment and attire, training coaches, and sports administrators and monitoring and evaluation. She outlined the spending under the Siyadlala and Legacy programmes, which covered programmes such as Women in Sport and Rural Girls’ games, People with Disabilities games, the Senior Citizen programme (Golden Games) and the capacity building of sport and recreation councils. The initial target was to take the mass participation school sport structures programmes to 323 schools. However, this target was exceeded, with the provincial department, in conjunction with the Provincial Department of Education in the Free State, having reached 900 schools.

The targets set for Siyadlala were not reached, but places were identified. The Legacy games only started in the third quarter, with training for the programme taking place in the second quarter. The school Mass Participation Programme had a change of focus away from sports festivals towards leagues within schools. With the roll out of leagues, procurement of equipment and attire for schools was done in the first quarter, so that schools could adequately prepare for the leagues. The “Magnificent Fridays” campaign was launched to support the national cricket, netball and rugby teams participating in World Cup events.

Some of the challenges included verification of leagues in schools, and a meeting was held with the provincial Department of Education to try to find a solution. Community sport also presented a challenge, as targets were difficult to reach, and the solution here was to improve the capacity of the sports councils.

Discussion
Mr Mashile asked if the 440% increase in target reflected in the presentation was correct. He noted that whilst some of these targets had been exceeded, others had not been met and this suggested that there was probably poor planning. The presentation seemed to indicate that annual targets had been reached in one quarter.

Ms Tlhakudi answered that the Department was targeting all 1658 schools in the province. The initial targets had been set at 323 but this was revised and the Department was now targeting 900 schools.

Mr Dan Kgothule, MEC for Sport, Recreation and Culture, Free State, invited the National Treasury to audit the quality of expenditure in the Free State. He added that there was a problem with alignment, and that the programme was guided by what the country sought to achieve.

The Chairperson commented that issues of alignment and national priorities should be raised in the relevant forums. This forum purely monitored spending, and ensured that it was in line with plans and targets. 

Mr Mashile queried whether it was correct that plans were made, but subsequently there was a decision not to follow those plans. He asked if the Provincial department tended to spend in areas where this was easy to do, rather than strictly according to plan. He requested that financial discipline be observed.

Mr Chaane asked why the quarterly targets and annual targets seemed to be the same. He also requested greater clarity on the “Magnificent Friday” project.

Ms Tlhaduki replied that the “Magnificent Fridays” project was launched at the State of the Province and that the MEC had mentioned it in his budget speech. A “Big Walk” was held to create awareness.

The MEC added that the Minister had asked for an increase in the roll out to schools, and this had resulted in non- alignment with the initial plans.

The Chairperson asked what equipment was being provided to schools.

Ms Tlhaduki replied that it was netballs, rugby attire and equipment generally needed for the students to play in a league.

Ms Thokozile Mkhonto, Director, Department of Sport and Recreation, said that 323 schools were identified and that 218 received attire and equipment.

Mr Chaane asked about the staff component, and asked if there were any vacancies.

Ms Tlhaduki replied that the staff presently comprised an Acting Director, two Deputy Directors and four officials in the district.

Mr Kgothule added that all the staff had the relevant and requisite qualifications.

Ms Julinda Gantana, Director, National Treasury, raised her concern that the information in the presentation differed from the report received by National Treasury.

Mr Mashile commented that this Committee would monitor that the actions taken were in accordance with the business plans submitted by the provincial Departments. If there were changes were made to the business plan, they should be communicated to all parties

Mr Kgothule replied that there was no provision for such changes to be communicated. This department constantly tried to do better, with whatever resources it had available. It was generally very difficult for schools to run sports in the last quarter as this conflicted with exams. The Department tried to make a positive contribution, and tended to run more programmes earlier in the year, so learners could concentrate on their studies in the last quarter.

The Chairperson pointed out that no one micro-managed the Department and that it seemed that when it came to implementation, the Department deviated from its own plans. He encouraged provinces not to deviate from their own plans.

Western Cape Provincial Department report
Mr Ivan Meyer, MEC for Sport, Recreation and Culture, Western Cape, said that the 2011/ 12 financial year marked the seventh year of the conditional grant.

Mr Brent Walters, Head, Provincial Department of Sport, Recreation and Culture, said that the grant supported the School Sports Mass Participation Programme, the Siyadlala Mass Community Participation Programme and the Legacy/ Club development.

He noted that his department had 23 staff who were employed on a full time basis. Officials visited projects, and monthly finance focus meetings were held. The total expenditure for the year was R42 964 000, and in the first quarter the actual expenditure amounted to 14%, but this represented 75% of the cash flow. The Department therefore felt it was on track. He agreed that some slight variations had occurred, as some of the human resources processes were not completed in the first quarter, and were thus rolled over to the second quarter. He added that there would be capacity building in the second quarter. He also drew attention to some of the upcoming items of major expenditure, which included the South Africa Games in October, youth camps, the Mass Opportunity and Development (MOD) Centres, which provided an after school service, and SHARP talent identification camps.

Discussion
Mr C De Beer (ANC Northern Cape) asked if the MPP programmes were rolled out in towns in rural areas. He enquired whether, in particular, learners in Beaufort West and Oudtshoorn were exposed to the programmes.

Mr Meyer replied that studies had been conducted on the growth potential of towns. Nodes were identified for rural development. These were the Eden district, Cape Winelands district, and the Cape West Coast. Sport programmes were actively pursued in rural areas.  He explained that there were 98 education management districts in the Western Cape and all of them had MOD centres. Rural sport was targeted, in addition to farm development sport. He had met with the MEC for Agriculture to plan a further rollout of programmes in the Oudtshoon area.

Mr Makhubela asked why savings were reported in this presentation

Mr Meyer said that this was not unusual, and it referred to the fact that a portion of the set percentage for this quarter was not spent. He conceded that he could have used an incorrect phrase. This was in fact probably more properly under-spending.

Mr S Montshitsi (ANC, Gauteng) asked about the youth camp and outreach projects. He wanted to know what formula was used to determine the figure.

Mr Meyer responded that if youth were going to become involved in crime, they tended to do so after school, between 2pm and 6pm The MOD Centres were staffed by two coaches and one coordinator, and aimed to create an after school programme for learners. The programme also promoted healthy lifestyles. It had created much excitement in the learners.

Mr Mashile asked if school sport structures were being used as implementing agents, and, if so, when they would report on expenditure.  He sought clarification on how money was transferred and how the reporting happened.

Mr Meyer explained that in past the transfer of money took place in December or January but that this year approval had been given to transfer the funds in April. Money was allocated in May to federations, and it would be easier to monitor actual expenditure.

Mr Walters added that money transferred to federations did not come from the conditional grant, but from the equitable share. He explained that partnerships were needed with federations, as sports assistants did not have the technical coaching skills.

Mr Mashile asked why there was a drop of 14% in spending, and he highlighted that people did not benefit from under-spending.

Mr Meyer said that staff were only appointed in the second quarter, although they were budgeted for also in the first quarter. The fact that the human resources function was centralised had led to the delay.

Mr Walters added that a sizeable bulk of money would be spent in October on the South African sports games.

Mr Mashile asked if the people who had been appointed were appropriately qualified.

Mr Meyer responded that his staff were fit for the purpose of their employment.

Mr Chaane asked if the money was being used for the intended purposes, and asked how many schools were benefiting from the programme. He also wanted details of the Department’s “Magnificent Fridays” campaign.

Mr Meyer responded that there were 155 MOD Centres in the province, with a bias on the rural areas. The “Magnificent Friday” campaign started with the Soccer World Cup and continued with the cricket and netball World Cups, and would be continuing also with the Rugby World Cup.

The Chairperson asked the MEC to provide a more detailed explanation on the spending patterns.

The Chairperson then queried if there were any other MECs present and noted that the MECs from Limpopo, KwaZulu Natal, Gauteng, Mpumalanga, Northern Cape and the North West were absent. The MECs from these provinces sent other representatives from the departments, in the form of Heads, Acting Heads or Chief Financial Officers of their departments.

Mr de Beer said there was no excuse for the MECs not to be present at this meeting. All communication happened on a weekly basis and the MECs should make every effort to attend meetings at the National Parliament and to make the necessary presentations to the Committee.

Mr Mashile said that it was critical that MECs must attend the meetings. He pointed out that it was quite possible, especially where departmental officials were in an Acting capacity, that they might not hold this position in the near future. The failure of the MECs to attend could well lead to misunderstandings between the provincial departments and the committee. He felt that if the Committee accepted the presentations in the absence of those MECs, this would set a bad precedent for oversight and accountability.

Mr Makhubela concurred with Mr Mashile, and felt that the presentations should not be accepted in the absence of the MECs who were ultimately responsible for service delivery.

Mr B Zulu (IFP, KZN) agreed and encouraged the Committee to take a strong stand on this issue.

Mr R Lees (DA KZN) added that it was a requirement that political heads should be present. He suggested that, at the next meeting, only the MEC should attend to present on the spending, pointing out that the travelling costs increased significantly if a range of staff accompanied the MEC.

The Chairperson suggested that the Committee should accept the reports tabled, but should not allow the officials to make the presentations. The presence of those MECs would be required for thorough engagement. He added that the monitoring of grants was a very serious matter. He would be reporting the non- attendance of MECs to the National Council of Provinces.

Ms Mkhonto, SRSA, noted that all provinces, with the exception of the North West and the Eastern Cape, had submitted reports. She added that the Eastern Cape was in need of assistance and that it had underspent by an estimated R10 million. The North West struggled with compliance and did not submit reports on time. In addition, Mpumalanga did not submit detailed reports, making it difficult to track expenditure. She noted that the Free State had made remarkable progress, and so had KZN, given that these provinces dealt with so many rural communities. She said that the Western Cape complied with reporting requirements, but could improve in increasing its grassroots participation. She also mentioned that the budget was increased by 6% to create the space for provinces to hire qualified personnel, and to pay stipends to contract workers. She said that many provinces did not take advantage of this, and still relied on volunteers.

The Chairperson concluded the meeting by saying that all MECs were required to report to the Committee. He would also ask the Minister of Sport to attend the next meeting.

The meeting was adjourned.