PORTFOLIO COMMITTEE MEETING

DATE: 10 October 2012

Venue: Parliament, Cape town

BOXING SOUTH AFRICA

Mandate as per Boxing Act 11 of 2001:

To provide for a new structure for professional boxing in the Republic;

to ensure the effective and efficient administration of professional boxing in the Republic;

to recognise amateur boxing; to create synergy between professional and amateur

boxing; to establish a Boxing Commission known as Boxing SA; to promote interaction between associations of boxers,

managers, promoters, trainers and officials and Boxing SA; and to provide for matters connected therewith

BOXING SOUTH AFRICA

Vision

To be a leading sport code in South Africa and a world class boxing authority

Mission

The effective and efficient administration and regulation of professional boxing

Values

P – ProfessionalismL - LeadershipA - AccountabilityD - Diversity

ACHIEVEMENTS The timeous appointment of the new board of

Boxing SA on 28/08/2011.The holding of a Board Induction Workshop and 4

board meetings 2011/2012 financial year.The successful establishment of committees. i.e.

Events Sanctioning Committee, Ratings Committee, Disciplinary Committee and Management Committee. Audit Committee interviews and appointment by end October.

ACHIEVEMENTS continuedThe development Action Plan to rectify AGSA’s

findings for the 2010/2011 AGSA report resulting in improved report 2012/2012.

Timeous submission of strat plan and all quarterly reports. Milestone in the history of Boxing SA

Road-show to present strategic plan and solicit input from stakeholders

ACHIEVEMENT continuedAdoption of MOU with SABC with final signing on

the recent SABC board meetingAdoption of functional structure formulation, to consist

of the Director: Communication and Marketing; Director: Compliance and Monitoring; Director: Corporate Services and a Chief Financial Officer.

appropriate licensing of boxing stakeholders in line with the provisions of the South African Boxing Act No.11 of 2001.

Achievement s continued77 tournaments promoted throughout the

country17 were female bouts

Province Tournaments

EC 38Gauteng 21KZN 11Limpopo 6WC 6Free State 2Mpumalanga

1

ChallengesSRSA grant not adequate to meet legislative

requirementsThere are no financial resources available to finance

strategic projects as per Strategic plan 2012 -2017 and strategic posts. (e.g Baby champs, training, rural development, infrastructure development e.t.c)

Representation in international conventions to leverage BSA’s presence in the world and continent

CHALLENGES continuedProvincial and local government support with

the exception of EC and KZN. (WC not interested at all)

Private strategic partnership with corporate sponsors

Annual Report 2011/2012Qualifications Reason Action Plan

Trade and other payables (opening

balance)

No supporting documentation due to

lack of proper financial administration in prior

years

Follow a process of write-off. Currently at

the final stage of sending negative

confirmations.

Trade and other receivables (opening

balance)

No supporting documentation due to

lack of proper financial administration in prior

years

Follow a process of write-off. Currently at

the final stage of sending negative

confirmations.

Annual Report 2011/2012Emphasis of

matterReason Action Plan

Significant uncertainties

Contingent liabilities arising from pending

lawsuits.

The CEO is busy trying to resolve the issues to avoid

the possible liability.Restatement of

corresponding figuresIt is uncertain why the

statement for the insurance asset had an

opening balance that was different from the

previous years closing balance. AGSA audited the

closing balance as accurate in the previous

year.

To ensure that the opening balance and closing balance correspond in the current

year.

Going concern There is still a risk that the entity may not be able

to go on business considering the actual net

deficit position.

SRSA and NT increased the annual grant this year and over the MTEF period. BSA board and CEO are working on generating more revenue for the entity. SABC contract

in process of finalization.

Annual Report 2011/2012Legal

requirementsReason Action Plan

Performance information

Indicators are not SMARTNew board appointed in the middle of the year,

decided to create a new strategic plan 2012-2017 since half the year had

already passed.

The risks have been addressed in the new

strategic plan. One issue stills remains is there is no

financial resources available to meet strategic objectives.

Hence sourcing funds.Audit committee New Board wished to

appoint new audit committee. Process was

not complete as at 31 March 2012.

The process is at the interview stage now.

Internal audit No revenue available to fund internal audit in the 2011/2012 financial year.

Internal audit team at SRSA will perform the internal

audit function in 2012/2013. the head of audit has met

with BSA already.

BSA CREDITOR ANALYSISMajor creditors & balances:

BSA EXPENDITURE ANALYSIS

•Reflects the affect of proper financial management & administration•Achieved through monthly finance reports, risk assessments and action plans

REVENUE

2012/2013

Sponsorship

(R0)

Sanctioning Fees - 30/09/201

1(R588 000)

Other provincial

grants(R1 000

000)

Forfeit fees

30/09/2011

(R7 000)

SRSA grant

(R5 052 000)

License Fees –

30/09/2011

(R220 000)

BSA REVENUE ESTIMATES SRSA grant 2011/2012 2012/2013 2013/2014 2014/2015

Approved grant 2 307 000 2 946 000 3 108 000 3 294 000

Additional grant *7 805 000 2 106 000 3 306 000 4 464 000

Total 10 112 000 5 052 000 6 414 000 7 758 000

Sanctioning fees 1 434 256 1 600 000 1 700 000 1 800 000

Licence fees 394 775 500 000 550 000 600 000

Other grants 1 060 000 1 000 000 - -

Total Revenue 13 001 031 8 152 000 8664 000 10 158 000

*Used to settle long outstanding creditors SARS & AGSA old board and audit committee members that were not paid.

All additional funding are used to fill in gaps for day to day expenditure and fill significant vacant posts.

No approved funds available to meet strategic objectives.

BOXING TECHNICAL CO-ORDINATOR NOMSA MDHLULI ACCOUNTS

ADMINSTRATORVERQUELENE JACOBS

IT & STATISTICS OFFICERSKHUMBUZO MOTHA

RECEPTIONISTLILLIAN DE WEE

GENERAL ADMINISTRATIVE

ASSISTANTMAJORIE THEBE

TOURNAMENTS & OFFICE ASSISTANTABRAM KAMBULE

PROVINCIAL MANAGERS

DIRECTOR OF OPERATIONSLOYISO MTYA (ACTING CEO)

DIRECTOR: COMMUNICATIONS & MARKETING

(VACANT)

CFO (OUTSOURCED: Financial Management Consultant)

DEPUTY MINISTER OF SPORT AN RECREATION HON. GERT OOSTHUIZEN

BOXING SA ORGANISATIONAL STRUCTURE

CEOMOFFAT QITHI

BSA BOARD

MINISTER OF SPORT AND RECREATION SAHON. MR. FIKILE MBALULA

HR MANAGER(VACANT)

FINANCIAL MANAGERTUMELO KEKANA

ACCOUNTS CLERK (VACANT)

PA to CEO(VACANT)

Generation of additional revenue - sponsorships

Appointment of permanent CFO – shortlisting is in progress – 2012/2013

Filling in significant vacant posts Clean audit reports

BSA main goals – MTEF period

THE END.

THANK YOU!