1 / 112

PPC Presentation of the 2011/12 Annual Report

PPC Presentation of the 2011/12 Annual Report. OPENING REMARKS MS NELISIWE MAGUBANE DIRECTOR GENERAL 11 OCTOBER 2012. PRESENTATION. In November 2010 the department’s management came together for its annual strategic planning.

marshall-maddox
Télécharger la présentation

PPC Presentation of the 2011/12 Annual Report

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. PPC Presentation of the 2011/12 Annual Report

  2. OPENING REMARKS MS NELISIWE MAGUBANE DIRECTOR GENERAL 11 OCTOBER 2012

  3. PRESENTATION

  4. In November 2010 the department’s management came together for its annual strategic planning. • During this process we came out with seven strategic objective which are aligned to government’s 12 outcomes as well as take into account the new government outcome based planning approach. • Our strategic plan and annual performance plan were based on several assumptions that included the availability of financial and HR resources. • As the Department of Energy, we are committed to the provision of an enabling platform for other sectors to speed up economic growth and transformation, create decent jobs and sustainable livelihood INTRODUCTION

  5. During the year under review, the Department operated within an environment where: • The credibility in South Africa Energy policy trajectory was enhanced by the IPPs procurement process that we painstakingly championed, which I must add has received acclaim far and wide. • We now need to ensure that we collectively give it the final push. • On the geopolitical front, we had to contend and develop a response plan to the sanctions by the US and EU on the Islamic Republic of Iran. • The vulnerability of the refining sector was exposed with a number of refinery shutdowns which diverted some of our attention into monitoring contingency plan. INTRODUCTION

  6. DEPARTMENT’S RESPONSE TO GOVERNMENT OUTCOMES

  7. DEPARTMENT OF ENERGY PPC PRESENTATION ON THE 2011/12 ANNUAL REPORT PROGRAMME 1: SUB-PROGRAMME: CORPORATE SERVICES Mr George Mnguni Deputy Director General

  8. 2011/12 Annual Report Corporate Services Introduction Key focus areas for 2011/12 Performance against targets/predetermined objectives Challenges/way forward/conclusion

  9. 2011/12 Annual Report Corporate Services • Key focus areas for 2011/12 • The main focus areas for Corporate Services for the year under review were the following: • Provision of Human Resource and Auxilliary support Services; • Provision of Legal Support Services to the Ministry and the department; and • Provision of Communication and Knowledge Management Support Services.

  10. 2011/12 Annual Report Corporate Services • 2. Key Achievement/ Partially and Non Achievements areas for Corporate Services • HR Plan of the DoE finalised and implementation commenced; • Organisational Structure and Framework for Occupational Classifications not achieved because of prolonged consultation process with Employee Organisations; • Matching and placement of staff also delayed due to the aforementioned; • All HR Policies finalised on target and implementation is ongoing; • Turnaround time for filling of vacancies improved to remarkable three months average; • Interventions to maintain vacancy rate of 9.6% against the Cabinet approved baseline of 15% were also implemented;

  11. 2011/12 Annual Report Corporate Services • 2. Key Achievement/ Partially and Non Achievements areas for Corporate Services • All Performance Agreements and Workplans finalised before 30 May 2011 as required and appropriate disciplinary sanctions imposed for non-compliance; • Performance reviews for staff also finalised before end of June; • Public Service Wellness Framework was approved and implemented in the first quarter of 2011; • The Skills Audit and plan finalised and submitted as required; • HRD Strategy and Training plan were finalised before end of June 2011 and implemented; • Managed to train 443 employees in administrative and functional areas; • DoE has exceeded the 50% representation target of women; and • All Presidential hotline cases were resolved.

  12. 2011/12 Annual Report Corporate Services • 2. Key Achievement/ Partially and Non Achievements areas for Corporate Services • The Records management plan is approved by National Archives and is being implemented; • Security Risk Management Plan is in place and implementation is ongoing; • Standard Operating procedures and Contingency plan finalised and implemented; • Alternative office accommodation was acquired through Public Works and DoE is settling in; and • On Legal Services front, all legal request were finalised and a target of 50% exceeded with 66% of requests received dealt with within the prescribed time- frame.

  13. 2011/12 Annual Report Corporate Services • 2. Key Achievement/ Partially and Non Achievements areas for Corporate Services • The draft Communication Strategy was implemented- capacity constraints impacted negatively on the finalisation of strategy; • Communications policies and procedures could not be finalised because of capacity constraints, particularly at SMS level; • External projects including Public Participation Programmes and DoE events were continuously managed; • Daily and Weekly media monitoring and daily media liaison services were provided as required; • Internal Communication plan was also developed and implemented; and • Events calendar was developed and implemented on an ongoing basis.

  14. 2011/12 Annual Report Corporate Services • 2. Key Achievement/ Partially and Non Achievements areas for Corporate Services • The Marketing, advertising and branding plan was developed and implemented; • Publications services were also established/developed and implemented; • The Stakeholder Management plan was developed and implemented, except the strategy because of lack of capacity to do same in the relevant unit; • The Draft Knowledge Management Strategy was developed, but approval was delayed due to planned relocation to alternative building and lack of space.

  15. 2011/12 Annual Report Corporate Services • Recruitment of persons with disabilities was challenge , thus the target of 2% could not be achieved- A strategy is developed and submitted for consideration; • Implementation of the structure at Macro-Organisational level has posed challenges relating to reporting and lines of authority- This has now been addressed through matching and placement of affected following a decision by the leadership of the DoE, after finalisation of the structure; • Establishment of a Knowledge Management Centre as well as development and implementation of a strategy and plan- This challenge has also been addressed following relocation of DoE to the new premises.

  16. ANNUAL FINANCIAL STATEMENTS AND THE REPORT OF THE AUDITOR GENERAL

  17. The year under review, year 2011/12, is the second year that the Department of Energy has been operating as an independent department. • There has not been any significant increase in the Department’s budget allocation between the years 2010/11 and 2011/12. • Of the 12% increase between the two years, 10.6% went to transfers and subsidies and only 1.4% went to the Department’s operational budget. • The challenges of the inadequate baseline allocation for the Department resulting from the split of the Department of Minerals and Energy remain – however engagements between NT & DoE are in progress INTRODUCTION

  18. From the 2011/12 total budget allocation of R6.2 billion, 95% went to transfers and these are: • Integrated National Electrification Programme - R3.2 billion; • Transnet’s New Multi-Product Pipeline - R1.5 billion; • NECSA - R586 million; • Energy Efficiency Demand Side Management - R398 million • And the balance were transfers to State Owned Entities and other smaller programmes. • Only 5% of the total budget was allocated for the Department’s operational needs, amounting to R305 million. • The Department spent 99.6% of its allocated 2011/12 budget. INTRODUCTION (cont)

  19. Statement of Financial Performance for the year ended 31 March 2012 Financial Performance

  20. 2011/12 BUDGET OVERVIEW

  21. 2011/12 BUDGET OVERVIEW

  22. Analysis of financial performance: • The department’s total spending for the year was R6.174 billion (99.6%) of the total budget of R6.20 billion. • The above represents an under spending of 0.4% i.e R26.65 million. • A total of R12.95 million (49%) of the overall balance of R26.65 million remaining are for Transfer payments • The composition of the overall balance of R26.65 million is as follows: • Compensation of Employees :R.032 million • Goods & Services :R8.55 million • Transfer Payments :R12.95 million • Capital Assets :R5.13 million Financial Performance

  23. DEPARTMENT OF ENERGY PPC PRESENTATION ON THE 2011/12 ANNUAL REPORT PROGRAMME 1: SUB-PROGRAMME: CHIEF FINANCIAL OFFICER Ms Yvonne Chetty Chief Financial Officer

  24. Analysis of financial performance: • A rollover request was submitted to NT for the unspent budget amount of R26.65 million (Subsequently 25.83 million was approved) • The entire unspent budget amount for Goods and Services and Capital Expenditure was fully committed in the 2011/12 financial year. • Goods & Services • The Department processed payments for International membership fees to a total of R8.1 million. • These payments remained in the Department’s Commitments awaiting the release of the foreign funds by the Reserve bank • The Reserve bank transferred the funds to the relevant foreign recipients on the 2nd & 3rd of April 2012 Financial Performance

  25. Analysis of financial performance: • Transfer Payments • An amount of R11.8 million of the overall balance of R12.9 million within this category was attributable to funding specifically appropriated for the EDI-H was not transferred. • EDI had sufficient funding to meet their monthly obligations and other company liabilities. • A rollover request was submitted to National Treasury for this amount to be directed towards the operational costs of the ADAM project – which was subsequently approved. • CAPEX • Funds earmarked for capital assets could not be spent due to the delay of the DoE relocation. A request for a rollover of these funds was submitted to National Treasury and approved. Financial Performance

  26. Financial Performance

  27. Detailed expenditure ( Top 5 Expenditure) Financial Performance

  28. Statement of Financial Position as at 31 March 2012 Financial Performance

  29. Analysis of financial position • Unauthorized Expenditure – R14.86m • The unauthorized expenditure of R14.86 million is due to an Infrastructure Grant transfer payments paid to the Mthonjaneni Municipality in May 2010. • The transfer was appropriated in the 2009/10 financial year , however the payment to the municipality was processed in March 2010, but transferred in May 2010 due to the system rejection of the banking details. • This amount is awaiting condonation and authorization from National Treasury. The department has subsequently implemented the necessary controls to avoid a recurrence.

  30. Irregular expenditure – R39.75 million • All irregular expenditure incurred in the 2010/11 financial year has been condoned. • For 2011/12 financial year the R39.485 million irregular expenditure closing balance - 99% relates to lease payments for office accommodation. (R22.09 million of this amount is for the current year and R17.395 million is for the prior year). • All of the above irregular expenditures have been condoned subsequently to the year end. Financial Performance

  31. Investments – R2.205 million • The department is a 100% shareholder in The South African Nuclear Corporation Limited (NECSA) and own 2,205 shares of R1 each • Current Liabilities – R26.935 million • The breakdown of the above is as follows; • R26.64M - surplus of voted funds, surrendered to NT • R218, 000 - departmental revenue, surrendered to NT • R67 000 - owing to SARS – paid post year end • R3, 000 - owing to GEPF – paid post year end • (NB: Surplus funds account for 99% of the current liabilities). Financial Performance

  32. Report of the Auditor General • Audit opinion: • The department received an unqualified audit opinion, without any emphasis of matter. • The department has completed an action plan to address all outstanding AGSA findings. • Most of the audit findings were addressed by 31 July 2012 • NB: All of the SOE’s reporting to the DoE have also received an unqualified audit opinion. Financial Performance

  33. DEPARTMENT OF ENERGY PPC PRESENTATION ON THE 2011/12 ANNUAL REPORT PROGRAMME 1: SUB-PROGRAMME: CHIEF OPERATING OFFICER Mrs Thandeka Zungu Chief Operating Officer

  34. SUMMARY OF PERFORMANCE AGAINST PREDETERMINED OBJECTIVES

  35. BRANCH PERFORMANCE The COO Branch(Governance and Compliance) started operating in May 2010 with less than 1% capacity and consist of the following Chief Directorates: Strategy and Risk Management Monitoring, Evaluation and Reporting State Owned Enterprise Oversight International Coordination Strategy and Risk Management The Department held its 2nd strategic planning session in November 2011 which resulted in the production of 2011/12 – 2015/16 Strategic Plan and the 2011/12 Annual Performance Plan that are aligned to Government Outcome based approach. The Department’ s revised Strategic Plan for 2011/12-2015/16 and the APP were tabled in Parliament in February 2012 and later presented to the Portfolio Committee on Energy and Select Committee on Economic Development.

  36. BRANCH PERFORMANCE(CONT) Strategy and Risk Management (cont) The Department has established a Risk Management Unit which includes the Anti-Fraud and Corruption function during the year. The Risk Assessments were conducted, the Risk Register was produced and mitigation strategies were put in place to enhance the control environment. Standard Operating Procedures for various functional Units within the DoE have been developed. Challenges/ partial and non-achievements Implementation of the Enterprise-Wide Risk Management Strategy for the Department Absence of risk management tool Provision of the department’s Service Delivery Plan

  37. BRANCH PERFORMANCE (CONT) Monitoring, Evaluation and Reporting The Monitoring and Evaluation Unit during the period under review developed the DoE’s foundational M&E guidelines, namely the M&E Framework, M&E Policies, Procedures and Quarterly Performance Reporting templates as well as Data collection instruments Reported on the department’s performance – quarterly and annually Challenges/partial and non-achievements: 43% target achievement Timeliness of management reports Development and finalisation of the Department’s Standard Operating Procedures.

  38. BRANCH PERFORMANCE (CONT) State Owned Enterprise Oversight Provide oversight of state owned entities reporting to the Minister, monitor performance against approved plans and ensuring that all SOE Boards are fully capacitated by appointing board members for SANEDI, NERSA,CEF, and PetroSA . The CEO of PetroSA was appointed during the 2011/12 FY. During the year under review, oversight Quarterly meetings between the Minister and the Chairpersons of the SOE’s, the DG quarterly meetings with the CEO’s and the DoE officials and the SOE’s Executives were convened to review the entities Performance against the approved plans and implementation of improvement plans to enhance performance. Following the Cabinet decision to halt the operations of the Electricity Distribution Industry Holdings, the branch is leading the process of winding up in collaboration with the appointed Administrator and EDIH Board

  39. BRANCH PERFORMANCE (CONT) Challenges/partial and non-achievements EDIH winding up by year end Finalisation of the SOE Oversight Framework (approved draft) to accommodate the recommendations of the Presidential SOE Oversight Committee. Sector risk management Department’s compliance monitoring

  40. International Coordination • During the year under review, the Department Coordinated the African Ministerial Energy Conference which was attended by more than 40 Energy Ministers. • The Conference produced the declaration which outlines the Energy needs for the Continent and Political commitments to alleviate Energy Poverty. • The Department was responsible for the COP17/CPMP7 preparations. • The Minister of Energy visited the following countries during the year under review: Zambia, Mozambique, Botswana and Namibia • The DoE International Relations Strategy, was developed and approved. • All International Agreements/ MOU’s signed by the DoE has been audited during the year under review. BRANCH PERFORMANCE (CONT)

  41. International Coordination (cont) • Agreements- declaration of Intent with the following Countries and Organizations were concluded: IEA, Swiss Confederation, Ghana, Lesotho, Denmark, Korea and DRC. • The SARi was signed with the United Kingdom, Germany, Denmark, Norway and European Investment Bank • The Department participated in Project Steering Committees that led to the DOI on SARi • Challenges/partial and non-achievements • Approval of the International Relations Strategy for the department – draft by year end • Approval – audit agreements signed by the department. BRANCH PERFORMANCE (CONT)

  42. DEPARTMENT OF ENERGY PROGRAMME 2 : HYDROCARBONS & ENERGY PLANNING Mr. Tseliso Maqubela Deputy Director General

  43. INTRODUCTION Purpose of the Branch: Undertake integrated energy planning to promote the sustainable use of energy resources by developing appropriate policies and regulations that promote the sustainable use of petroleum, coal gas and renewable energy sources.

  44. A BRIEF NOTE OF LINE FUNCTIONS In order to achieve the government mandate this Programme performs the following functions: Hydrocarbons and Energy Planning Management provides overall management of the programme. Energy Planning promotes the sustainable use of energy resources through integrated energy planning (In terms of the National Energy Act, Act No. 34 of 2008, the Minister is required to publish and Energy Plan on a annual basis). Hydrocarbons develop policy and regulations to manage petroleum, coal, and natural gas. The Petroleum Controller is currently included under this sub-programme and is responsible for the administration and issuing of petroleum licenses, monitoring and enforcement of license conditions as prescribed by the Petroleum Product Act (Act No.120 of 1977) as amended.

  45. BRANCH HIGHLIGHTS Operationalisation of the NMPP and facilitation of the linefill which improved infrastructure for security of supply. Compliance inspections for Petroleum Licensing and the sting operations to uncover illegal fuel sales. Petroleum Products Licensing Awareness Campaigns done in all provinces. Participation of the Department in the development of the Coal Roadmap and the facilitation of its completion. Implementation of the Regulatory Accounting Systems through introducing the framework in the fuel margins. Intervention on new Job Industry Sites to facilitate accelerated job creation.

  46. BRANCH HIGHLIGHTS (CONT…) Increase in turnaround time for processing of all applications that meet the acceptance criteria. Development of Standard Operating Procedures for all processes thereby improving consistency in the application of the Law. Blending value and break even price for biofuels established. Support mechanism not finalised. Regulatory on mandatory provision of Energy Data promulgated. CCS Road Map noted and supported to Cabinet. IEP Draft Strategy presented to Cabinet. LFC Audit Report completed. On behalf of the Director General the branch spearheaded Government Response to the sanctions imposed on IRAN by US and the EU.

  47. WORK IN PROGRESS/AREAS OF IMPROVEMENT Completion of the IEP Underestimation of the complexity of the task given the resource constraints Gas Amendment Bill not completed. Petroleum Amendment Bill not completed. Regulations on Cleaner Fuels Specifications not promulgated as was planned. Regulations on Mandatory Blending of Biofuels not finalised. Integrated Energy Centre programme delayed due to administrative and logistical challenges. Strategic Stocks Framework not finalised 20 Year Plan not completed

  48. WORK IN PROGRESS/AREAS OF IMPROVEMENT (CONT….) Fuel Pricing Framework Review not completed Principles for incentivising investments in cleaner fuels not done LPG Strategy not completed (Tactical Move)

  49. CHALLENGES Reluctance to submit/provide data Human Resource Challenges Internally/skills Unplanned Refinery outages and impact on personnel Quality Management System issues Inertia

  50. DEPARTMENT OF ENERGY PPC PRESENTATION ON THE 2011/12 ANNUAL REPORT PROGRAMME 4: NUCLEAR Mr Zizamele Mbambo Deputy Director General

More Related