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Department of Transport
Annual Report 2006/07Portfolio Committee
6 – 7 November 2007
Contents of presentationDepartment
of Transport
Section 1• Review of 2006/07
Section 2• Audit outcomes for 2006/07
Section 3• Performance information
Section 4• Staff Establishment
Section 1: Review of 2006/07Department
of Transport
• Highlights of Annual Financial Statements:
• Adjusted budget 2006/07• Reprioritisation in 2006/07• Under expenditure in 2006/07
• Highlights of Annual Report
Department
of Transport Expenditure trends for 2006/07:Adjusted Budget
Details R’000Original budget per 2006 ENE 12 870 458
Adjusted Budget:
Funds rolled over from the previous year: 211 500
Capacity development - academic institutions 3 000
Late invoice for oil pollution prevention services 3 300
Integrated rural mobility access project 1 200
Service providers assisting with the taxi recapitalisation programme, and provinces assisting with the permit conversion process
54 000
Scrapping of old taxi vehicles 150 000
Unforeseen and unavoidable expenditure: 45 100
Additional bus subsidies - increases in the fuel price 45 100
Other adjustments: 619 732
Operational costs for the S.A. Rail Commuter Corporation (SARCC) for liabilities for employees transferring from other passenger rail entities
439 732
Operational shortfall of the SARCC following a due diligence report 180 000
Total of Adjusted Budget 876 332
Final budget for 2006/07 13 746 790
Department
of Transport Expenditure trends for 2006/07:Reprioritisation
Details R’000Shifted from savings in Compensation of Employees across Programmes for promoting October Transport Month
14 000
Reduced Transfers and increased Goods and Services to assist Provinces with the taxi recapitalisation process
68 000
Shifted R7 million across Programmes and R7 million within Programme 1 for further October Transport Month projects (renaming of OR Tambo, taxi communications, Remembrance Day)
14 000
Additional funds made available across Programmes for Arrive Alive communications
9 000
Shifted funds across Programmes for Capacity Development 2 400
Shifted funds across Programmes for:• Corporate Support• Human Resource Management• Government Fleet Services
1 000
800
800
Department
of Transport Expenditure trends for 2006/07:Under expenditure
Details of major amounts under spent R’000
Scrapping of old taxis 252 500
Taxi recapitalisation projects 30 400
Rural Mobility and Access projects 28 000
Special investigations into Driver and Vehicle Testing Centres 18 500
Restructuring of the Road Accident Fund 14 000
Vacant posts that could not be filled 14 700
Policy development projects 7 000
Delays in establishment of Rail Economic Regulator and development of legislation for Maritime Security
7 000
Development of the NLTTA and National Transport Master Plan 7 800
Infrastructure and systems for 2010 Soccer World Cup 1 900
Freight Logistics projects 2 700
Other 1 900
Total 386 400
Department
of Transport
New activities undertaken during the financial year include:
• Established the Independent Ports Regulator
• The department approved security plans for ports and ships and also appointed staff to continuously monitor the implementation of these plans
• The maritime Trilateral agreement was concluded between India, Brazil and South Africa
Highlights of Annual Report
Department
of Transport
New activities undertaken during the financial year include: (continued)
• The capital restructuring of the Airports Company of South Africa Ltd. was completed
• Cabinet approved a five-year Airlift Strategy for the regulation of air transport to enhance the air transport sector’s contribution to sustainable growth
• The process of conversion of taxi permits into operating licenses was completed
• A Scrapping Administrator was appointed for the scrapping of old taxi vehicles and the process of scrapping old taxi vehicles was started during the year
Highlights of Annual Report
Department
of Transport
New activities undertaken during the financial year include: (continued)
• A draft Transport ASGISA investment strategy and financing options was completed
• A Public Transport Plan was developed
• New priority statements from provinces and municipalities were considered for continued funding from the Public Transport Infrastructure Fund
• The Performance Indicator Framework has been completed
• The department started to oversee the construction of the Gautrain Rapid Rail Link
• The development of a Transport Master Systems Plan was initiated
Highlights of Annual Report
Department
of Transport
New activities undertaken during the financial year include: (continued)
• Pilot studies were initiated to investigate and recommend Travel Demand Measures in the Cities of Johannesburg, Cape Town and Durban
• A GIS mapping room was established in the Department. Transport Infrastructure and Services maps can now be produced in the mapping room
• The Department, through the S. A. National Roads Agency Ltd., implemented an Intelligent Transport System (ITS) pilot project on the N1 from Johannesburg to Pretoria. Plans are underway to extend ITS to cover all national roads in Johannesburg, Durban and Cape Town
Highlights of Annual Report
Section 2: Audit outcomes for 2006/07
Department
of Transport
• Emphasis of matter • Other matters:
• Non-compliance with legislation • Matters of governance • Corrections made to financial statements
• Value-for-money matters • Internal control
Department
of Transport Audit outcomes for 2006/07:Emphasis of matter
AUDIT REPORT ACTIONS TAKEN ACTIONS TO BE TAKEN
Previous qualification:
Treasury indicated that the contract for the production of credit card format driver’s licences should be treated as a Trading Account
• Financial statements compiled• Audit being finalised up to 2006• Approval obtained to create a
trading Account• In process of appointing
contractors to operationalise the Trading Account and to ensure compliance
• Operationalise the Trading Account
• Transfer the contract to the RTMC
Matter will notrecur
Department
of Transport Audit outcomes for 2006/07:Other matters
AUDIT REPORT ACTIONS TAKEN ACTIONS TO BE TAKEN
Non-compliance with legislation:
Internal audit plan and three year rolling plan not reviewed and no follow up audits done
• Risk assessment completed• Audit Committee approved the
Internal audit plan and three year rolling plan on 26/9/07
• Follow up audits in process
Follow up audit reports will be tabled at Audit Committee meeting on 22/11/2007
The fraud prevention plan and risk management policy were not officially approved
The plan and policy were approved after year-end and accepted by Audit Committee
Implementation plan was presented to Risk Management Committee on 29/10/2007
Salary reports and payroll certificates not signed off in time
• Signed off for 2006/07• Being followed up monthly
In process of delegating to Budget Controllers to fast track
Irregular and fruitless and wasteful expenditure not reported
Process to deal with such cases developed and circular issued
Cases identified will be reported
Monthly reports in terms of DORA not submitted
• Now receiving confirmations that reports were submitted
Resolved
Resolved
Resolved
Department
of Transport Audit outcomes for 2006/07:Other matters
AUDIT REPORT ACTIONS TAKEN ACTIONS TO BE TAKEN
Non-compliance with legislation:
No co-ordination between internal audit divisions of DOT and Gauteng w.r.t. Gautrain
Internal Audit are in consultation with Internal Auditors of Gautrain
Co-ordination plan to be implemented
Non-compliance with National Road Traffic Act by Testing Centres
Inspection reports Regulations in the process of being reviewed to enable DOT to suspend Testing Centres
Matters of governance:
Not all SCOPA resolutions were implemented
• Irrecoverable levies due by DLTC’s were written off
• Processes were put in place to fast track filling of vacancies
Audit committee not functioning effectively
New fully functional Audit Committee appointed
Resolved
Resolved
Will not recur
Department
of Transport Audit outcomes for 2006/07:Other matters
AUDIT REPORT ACTIONS TAKEN ACTIONS TO BE TAKEN
Material corrections made to financial statements:
• Corrections were made to the financial statements emanating from audit findings
• Processes were put in place to deal with irregular and fruitless and wasteful expenditure
• Classification of certain expenditure was resolved with Treasury
• Bank reconciliation process was reviewed
• Misallocations were corrected• Disclosures were corrected and
processes were pt in place to ensure correct disclosure
Processes were put inplace to ensure that similar corrections will notbe repeated
Department
of Transport Audit outcomes for 2006/07:Other matters
AUDIT REPORT ACTIONS TAKEN ACTIONS TO BE TAKEN
Value for money matters:
Tenders awarded and management of contracts were not always done effectively
In process of appointing a consultant to oversee the management of contracts in DOT
The number of vacancies remained at a high level
Processes were put in place to fast track the filling of vacancies.The vacancy rate did not decline due to the high number of resignations in 2006/07
Internal control:
eNaTIS audits were completed during the preproduction / development stage of the system
Auditors were engaged to commence with the post implementation audit
The post implementation audit report will be separately tabled in Parliament
There was an absence of officially approved policies
Several policies and strategies were approved after year-end
Draft policies and procedures will be tabled at EXCO for approvalWill not recur
Department
of Transport Audit outcomes for 2006/07:Other matters
AUDIT REPORT ACTIONS TAKEN ACTIONS TO BE TAKEN
Risk assessment: There was a lack of sound practices for fraud prevention and for ensuring compliance with legislation
• The risk assessment was completed and the Internal Audit Plan was based on the risk assessment.
• The reviewed fraud prevention plan was accepted by the Audit Committee
Fraud prevention plan must be fully implemented. Will be presented to Risk Management Committee on 29/10/2007
Monitoring of controls: Review of reconciliation’s, confirmations from external parties and internal audit processes were not effective
• Internal checking procedures were developed and implemented
• Reconciliation’s of suspense accounts are done monthly, and the bank reconciliation process was reviewed
• Internal audit started to function effectively
Resolved
Resolved
Section 3: Performance information for 2006/07
Department
of Transport
• Transport Policy, Research and Economic Analysis
• Transport Regulation and Accident and Incident Investigation
• Integrated Planning and Inter-sphere Co-ordination
• Freight Logistics and Corridor Development• Public Transport• Public Entity Oversight and Economic
Regulation• Administration
Department
of Transport Transport Policy, Research and Economic Analysis
Planned output Actual performance
Draft Maritime Transport Policy Completed
The Merchant Shipping (National Small Vessels Safety) Regulation, 2007.
Developed
National Ports Act, (Act No.12 of 2005) Proclaimed in Government Gazette No 29421.
Amendments to Road Transport Regulation to improve safety requirements of vehicles transporting passengers.
Completed
Transport Economic Analysis The Performance Indicators Framework has been completed. The second phase of data collection has started.
White Paper on National Maritime Transport Policy
Completed
Research and development Innovation strategy completed
Department
of Transport Transport Policy, Research and Economic Analysis
Planned output Actual performance
Technical research reports Completed for 9 provinces.
Planning for 2008 household survey started. Planning for survey started
23rd Amendment of the Civil Aviation Regulations.
Approved by Minister
Carriage by Air Amendment Act, (Act No.15 of 2006).
Published by Minister
Convention on International Interest in Mobile Equipment, 2007.
Proclaimed on the 24th August 2007 and published in Gazette No. 30213.
National Land Transport Transition Amendment Act, (Act No 26 of 2006)
The NLTTA was successfully amended to accommodate new developments like the taxi recapitalisation programme
Increasing access to social and Public Amenities
Development of school bus transportation strategy
Department
of Transport Transport Policy, Research and Economic Analysis
Planned output Actual performance
Development of Regulatory Institutions:
Public Discussion Document on Single Transport Regulator for South Africa Discussion document drafted
Integration of the Non -Motorized Transport as Mode of Transport
Policy framework for Animal Drawn Vehicles Developed
Department
of Transport Transport Regulation and Accident and Incident Investigation
Planned output Actual performance
Road Transport regulation The K-53 – Practical Driving Test Manuals for Examiners was updated and published in the Government Gazette. Centralised information sessions were held in all provinces. 24000 Manuals were printed
Road Transport regulation Monthly reports and an annual analytical report on road traffic accidents compiled and released
Civil Aviation regulation
Bilateral Air Services negotiations were held with France, Mozambique, Oman UAE, Bahrain and Qatar
Maritime regulation The National Ports Act, 2005 was proclaimed. The draft regulations were published for comment
The Ports Regulator Board Appointed
Draft Merchant Shipping Regulations Published for comment
Department
of Transport Transport Regulation and Accident and Incident Investigation
Planned output Actual performance
Rail regulation:
A framework of economic regulatory requirements for the rail sector and a framework for a reformed rail sector
Completed
Search and rescue:
The National Search and Rescue Policy Manual Developed
A Multilateral agreement on the co-ordination of maritime search and rescue services
Concluded between five countries (the Comoros, Madagascar, Mozambique, Namibia and South Africa)
Sub-regional Maritime Rescue Coordination Centre (MRCC)
Commissioned
Draft Search and Rescue Regulations Approved by the Search and Rescue Executive Committee
Department
of Transport
Integrated Planning and Inter-sphere Co-ordination
Planned output Actual performance
Transport Planning:
Municipal transport plans Completed for all municipalities
Planning Regulations New planning regulations prepared, which
•distinguish between three types of Planning Authorities (PA’s)•require MEC or Minister to categorize PA’s•has different planning requirement for different type of PA•require reduced frequency for updating plans•has reduced requirements for CPTR, however,•introduces comprehensive Land Transport Register including, (CPTR, Roads, Traffic, Freight & Land Use data)
Department
of Transport
Integrated Planning and Inter-sphere Co-ordination
Planned output Actual performance
TDM strategies Finalised for cities of Johannesburg, Cape Town & Durban
ITS pilot on N1 Completed – extending signage and rank metering on selected on-ramps
A study of the Transport Authority pilot in Ethekwini
Completed
Integrated Rural Mobility Access Implementation is underway in Sekhukhuni, OR Tambo and Umkhanyakude
1,996 bicycles have been distributed to schools
EPWP implementation plan An investigation report was developed
Department
of Transport
Integrated Planning and Inter-sphere Co-ordination
Planned output Actual performance
Increase National road network Increased from 12,000km to 15,500km
A study for the identification of the secondary strategic road network
Study was initiated
Upgrade of roads Provinces are undertaking the upgrade of selected roads
Develop national standards for overloading control
Discussions with the SABS are underway
Transport Action Plan for 2010 Finalised and approved
NMT/IMT conference and exposition to profile and raise awareness about NMT/IMT
Successfully held in February 2007. 439 International and local delegates attended.
10 year NMT rollout Communication and marketing plan has been developed to guide the rollout
Department
of Transport Freight Logistics and Corridor Development
Planned output Actual performance
National Freight Logistics Strategy (NFLS):
The National Freight Logistics Strategy Approved by Cabinet in September 2005
System requirements for the National Freight Information System
Completed
Railway Economic Regulatory Framework Near completion
Sub-sectoral strategies Being developed
Freight Monitoring Framework Being developed
Roll out of Freight Plans particularly 2010 SWC host cities
Finalising Terms of Reference
Freight Business Intelligence Framework Developing Terms of Reference
Department
of Transport Freight Logistics and Corridor Development
Planned output Actual performance
National Freight Databank:
Set up of NFD in eight provinces Completed
Identify and assess various national and provincial corridors
Completed
Upload information on the eight provinces on the Department’s GIS platform
Completed
Develop Terms of Reference for National update of NFD
ToRs finalised and submitted for approval
Report on system inefficiencies at all ports of entry
Finalised needs and infrastructure assessment at our top 21 ports of entry
In the process of finalising a feasibility study for a truck stop on the Maputo Corridor (N4)
Department
of Transport Freight Logistics and Corridor Development
Planned output Actual performance
Freight and Logistics Forums Established 4 Provincial forums (Mpumalang Kwa-Zulu Natal Western Cape North West)
In the process of setting up Provincial forums for the other five provinces
Develop plans to improve the safe movement of heavy vehicles along the Maputo Corridor by introducing truck stops
Feasibility study is being conducted
Revival of the Ressano Garcia to Maputo Rail line
In the Planning Phase
Development of an Intermodal Facility at Cato Ridge
In the Planning Phase
Development of the Durban Freight Plan In the Planning Phase
Development of the Harrismith Hub Finalising the second phase
Department
of Transport Freight Logistics and Corridor Development
Planned output Actual performance
Revival of Branch Rail Lines Engaged with Transnet Freight Rail (then Spoornet) on identification and transfer of branch lines
Currently reviving branch lines that have potential, funded through DEAT:
Nkwaleni (R10 million) 530 000 tons of sugar cane
Belmont-Douglas (R54 million 550 000 tons of grain)
Kei Rail
Implement Rail plan priority corridors Exceeded the target for refurbishing coaches: 156 finished
Department
of Transport
Public Transport
Planned output Actual performance
Public Transport Strategy and Action Plan Approved by Cabinet in 2006
Integration plan for the Gautrain Rapid Rail Link
Completed and approved in 2006
National and Regional Passenger Rail Plan Completed and approved by Cabinet
SARCC and Metrorail consolidation Completed
Next phase of consolidation with Shosholoza Meyl planned over the MTEF
Taxi recapitalisation project Officially launched
Department
of TransportPublic Transport
Planned output Actual performance
New taxi vehicle models 32 models of new taxis are fully compliantwith the 2005 safety specifications. Majority midi-buses and 5 mini-buses comply with the 2006 safety specifications (models are with SABS for testing and certification)
41 935 TRP compliant NTV have entered the taxi sector between 2005 and 2007
29 813 TRP compliant vehicles have been recapitalised without the scrapping allowance (normal fleet renewal)
Taxi Scrapping Administrator Launched in October 2006 and is operational
9000 taxi operators registered to exit the taxi industry
2800 taxis were scrapped by March 2007
Establish Provincial mobile service units for the scrapping of old taxi vehicles
Provincial scrapping sites have been established
10 additional Mobile Service Units are deployed in Provinces – 1 unit per province and 2 in Gauteng
Payment of the scrapping allowance is based on a verification process (operating license, engine and chassis numbers, banking details, etc)
Department
of TransportPublic Entity Oversight and Economic Regulation
Planned output Actual performance
Corporate Governance Performance agreements were signed with all public entities
All public entities submitted quarterly reports
Regulations for the Port Regulator Draft Regulations published for comment
White Paper on National Civil Aviation
Draft White Paper completed
Implementation Strategy for the Yamoussoukro Decision
Incorporated into the approved Airlift Strategy of 26 July 2006.
Convention on International Interests in Mobile Equipment and Protocol on Matter Specific to Aircraft Equipment
Approved by the National Assembly and the NCOP and the instruments of Ratification were signed by the Minister of Foreign Affairs on 14 November 2006.
Department
of TransportPublic Entity Oversight and Economic Regulation
Planned output Actual performance
The Road Accident Fund (RAF) Amendment Act, 2005,
Assented to
Regulations in terms of the RAF Amendment Act
Draft Regulations published for comment to provide for the assessment of serious injuries
Strategy for the Restructuring of the RAF in line with the Comprehensive Social Security System for public consultation
Approved by Cabinet
Consolidated Regulations in terms of the RAF Act (including assessment of serious injury)
Published for public comment
Montreal Convention, 1999 Adopted by Parliament and the instrument of ratification was submitted to ICAO
Carriage by Air Amendment Act, 2006
Published on December 2006
Section 4: Staff Establishment
Department
of Transport
• Turnover rate• Vacancy age analysis• Personnel establishment • Vacancy ratio’s • Employment equity
Turnover Rate per Programme
42
6 18 8 4 0 10
20
40
60
Pgrm1
Pgrm 3 Pgrm5
Pgrm7
Turnover rate
Turnover rate
%
Turnover Rate per Level
1012.66
24
30.37 33
41.78
12
15.18
0
5
10
15
20
25
30
35
40
45
Level 3-5 Level 6-8 Level 9-12 Level 13-16
No.
%
Vacancy Age Analysis
0
20
40
60
80
100
120
140
Stage1
Stage3
Stage5
Stage7
Total PostsStg 1JOB PROFILE
Stg 2ADVERT
Stg 3LINKED TO OTHER POST
Stg 4ADVERT CLOSED
Stg 5SHORTLISTED
Stg 6INTERVIEWS HELD
Stg 7 OFFER MADE
Stg 8HEAD-HUNTING
10 28 23 132 25 12 13 6
Measures to Reduce Vacancy Rate
• Vacancy management strategy implemented as per EXCO directive (Use it or loose it principle)
• Vacancy reduction project incorporated into 2007/2010 strategic plan
• Filling of vacant posts incorporated into managers performance agreements
Measures to Reduce Vacancy Rate
• Prioritized Retention Strategy (At consultation stage with Organised Labour)
• Enhance Training and Development initiatives• Accelerated Management Development Programmes, w.r.t.
scarce and critical skills in the field of transport planning, contract management, project management, maritime/aviation studies, econometrics and transport modeling.
• Increasing Investment in Centres of Development by 36.21% (4.2 Million for the current financial year)
• DPSA to consider minimum period in a post before a person applies for promotion
Equity
Category DPSA Targets Current Status
Black people at senior management level 75% 89,86% (62)
Women at senior management level 30% 30,43% (21)
Employees on SMS level (13+) in terms of National Demographics
Posts filled i.r.o. Race
73,01% (51) 4,35% (3) 11,60% (8) 10,14% (7)
Posts filled i.r.o. Gender
68% 32%33%
67%
62% 38%100%
0%
Department
of Transport
Financial Year: 2004 - 2005The organizational structure expanded from 4 Branches comprising of 482 posts to 6 Branches with 557 posts
Financial Year: 2005 - 2006The organizational structure remained unchanged
Financial Year: 2006 – 2007The organizational structure expanded from 6 Branches comprising of 557 posts to 7 Branches comprising of 1023 posts of which 674 were activated
Personnel Establishment
557 557 674 674848
973 1023
0
200
400
600
800
1000
1200
2004/05 2006/07 2008/09 2010/11
Department
of Transport
Vacancy ratio for the past three years Total posts VacancyFinancial Year 2005 – 2006: 557: 32%Financial Year 2006 – 2007: 621: 41%Financial Year 2007 – 2008: 674: 38%
Vacancy Ratio
0
20
40
60
80
% Filled 68 59 62
% Vacant 32 41 38
2005/06 2006/07 2007/08
Department
of TransportVacancy Ratio
Details Posts Vacant Filled % Vacant % Filled
2005/06 557 178 379 32% 68%
Posts added 64 64
Appointments (66) 66
Resignations 79 (79)
2006/07 621 255 366 41% 59%
Posts added 53 53
Appointments (88) 88
Resignations 36 (36)
2007/08 latest 674 256 418 38% 62%
Current vacancy ratio’s would have been if no posts were added:
In 2007/08 33% 67%
In 2006/07 and in 2007/08 25% 75%
Department
of Transport Employment Equity
Current Employment Equity Status: 30 September 2007
Category DPSA Targets
Current status
Black people at senior management level 75% 88,16%
Women at senior management level 30% 34,21%
People with disabilities at all levels 2% 1,3%
National demographics
African Coloured Asian White
79% 8,9% 2,5% 9,6%
Male / Female M F M F M F M F
Posts filled I.r.o. race
80,43%
(333)
3,14%
(13)
3,62%
(15)
12,81%
(53)
Posts filled I.r.o. gender
48%
159
52%
174
54%
7
46%
6
47%
7
53%
8
38%
20
62%
33
Department
of Transport
Thank you